France Appeals Court Refusal to Suspend Shein Marketplace

The French government announced it will appeal a Paris court ruling that rejected a proposed three-month suspension of Shein’s marketplace. While the court deemed a full suspension “disproportionate,” it ordered the platform to implement strict age-verification measures for adult products or face a €10,000 (MX$211,446) fine for each violation.

The legal action follows findings by the French consumer watchdog, the DGCCRF, which identified childlike sex dolls and prohibited weapons on the marketplace. The government stated it remains convinced of the "systematic risk" associated with Shein's business model and is pursuing the case under Article 6.3 of France’s digital economy law.

The ruling requires Shein to utilize age-verification tools, beyond a simple declaration, to prevent minors from accessing pornographic content. Shein previously disabled its marketplace in France on Nov. 5 after the illegal listings were discovered, though its site selling Shein-branded clothing remained accessible throughout the period.

A spokesperson for Shein welcomed the ruling, stating: "We remain committed to continuously improving our control processes, in close collaboration with the French authorities, with the aim of establishing some of the most stringent standards in the industry, and we have been intensifying these efforts. Our priority remains protecting French consumers and ensuring compliance with local laws and regulations."

However, legal experts and child protection advocates have expressed skepticism. Christine Cerrada, a legal adviser for L'Enfance au Coeur, described the court’s actions as "clearly insufficient," noting that "from a legal standpoint, it is well known that age-verification measures are extremely difficult to implement."

Financial Performance and Global Scrutiny

Shein, which is privately owned by parent company Roadget Business Pte Ltd, reported global revenues of US$37 billion in 2024. The company has recently explored public listings in Hong Kong after unsuccessful attempts in New York and London.

The French crackdown coincides with broader regulatory pressure across the European Union and the United States:

• Digital Services Act (DSA): The European Commission has requested additional information from Shein regarding illegal products, though it has not yet opened a formal investigation.

• Trade policy: The EU recently agreed to impose a €3 fee on low-value e-commerce parcels to close a customs duty loophole, mirroring the removal of “de minimis” provisions in the United States.

• US investigations: Texas Attorney General Ken Paxton launched an investigation this week into whether Shein violated state laws related to labor practices and consumer product safety.

During recent hearings, Shein’s lawyers argued that the platform is facing “discriminatory treatment” and a political “crusade.” While other platforms—including AliExpress, Amazon, and eBay—were also cited by French regulators for selling illicit products, enforcement efforts have primarily focused on Shein. Following the initial watchdog findings, Shein banned all sex dolls and suspended its global adult product category on Nov. 3.