France became the first country to impose a fee on ultra-fast fashion items starting September 1 as part of broader efforts to curb massive textile waste, halt overproduction and safeguard local businesses.
Under the new law, companies are obliged to pay EUR0.25 for small items such as socks and underwear, rising to EUR2 for T-shirts, EUR9 for jeans and EUR12 for a jacket in 2026.
The levy could reach up to EUR19.50 per item by 2030, though the cap remains at 50 per cent of the product’s pre-tax price, Reuters reported.
The fees are calculated using a formula that takes into account the volume of clothing sold on the market, their prices and repairability, with the per-item fee determined by a set scale based on each product’s score.
Fees targets Asian ‘ultra-fast fashion’ companies
The new levy is expected to target Asian companies such as Shein, Temu and AliExpress, which are known for selling large volumes of cheap apparel and driving the rapid growth of so-called “ultra-fast fashion.”
It is also part of the government’s efforts to rein in the three Asian e-commerce giants, which have grown rapidly in popularity across France in recent years.
On the other hand, European-based retailers such as H&M and Zara are exempt from the fees, raising speculation that the measure could disproportionately affect non-European firms.
The moves came after the French Parliament passed legislation in June to regulate firms known for selling large volumes of lower-quality clothing at cheap prices.
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China slams ‘discriminatory’ measures
The measure drew ire from China, which sharply criticised it as “discriminatory” and a blatant violation of existing world trade principles.
“We urge France to abide by WTO (World Trade Organisation) rules and immediately correct the discriminatory practices,” a spokesperson from the Commerce Ministry said.
China also said the government would closely monitor the formulation and enforcement of the regulation’s implementing rules, warning that Beijing would take necessary action if the rights and interests of Chinese firms were endangered, China Daily reported.
These concerns came as imports of small parcels from China dropped by up to 40 per cent since a separate EUR3 EU levy came into force in July.
Shein, Temu voice concerns
Meanwhile, Shein previously told the BBC that the new legislation targeting ultra-fast fashion firms would only affect French consumers in the long run.
The Singapore-based company emphasised that the measure would further “worsen the purchasing power of French consumers” amid the continuous increase in the cost of living.
Similarly, a spokesperson from Temu voiced concerns over the new measure, arguing that the company does not function as a fast-fashion company because it is a marketplace and does not produce its own products.
The European Commission has also raised concerns over whether the legislation complies with existing European Union laws.
In particular, the commission questioned the law over potential conflicts with broader EU internal market rules, as well as concerns over the freedom to conduct business fairly within the bloc.
Govt defends levy on fast fashion brands
Nonetheless, Minister for Ecological Transition Mathieu Lefevre said the government had addressed these concerns, stressing that the measure complied with EU law.
He also said the new law only aims to address the massive ecological damage and overconsumption driven by cheap and disposable clothing promoted by ultra-fast-fashion firms.
“The harmful effects of ultra-fast fashion on our environment and our economy are well known and documented,” said Minister for Ecological Transition Mathieu Lefevre, as quoted by Yahoo Finance.
It remains to be seen whether the new legislation will be enough to achieve France’s objectives, particularly amid the worsening climate crisis.
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KC Maderia