Big news in the cross-border e-commerce world! France has slapped fast-fashion giant SHEIN with a massive fine: €40 million!

This is no small sum, and the reason? France directly points to SHEIN's deceptive commercial practices!

Why the Fine? France's DGCCRF Reveals Two Major "Charges"!

After a nearly year-long in-depth investigation (covering October 2022 to August 2023), the French Directorate General for Competition, Consumer Affairs and Fraud Control (DGCCRF) found serious issues with SHEIN's promotions and environmental claims:

1. "False Discounts": Your "Crossed-Out Price" Might Be a "Trap"!

   • French regulations stipulate that the reference price for a promotion must be the lowest price offered in the 30 days preceding the start of the promotion. However, the DGCCRF found that SHEIN sometimes failed to comply with this rule, even "raising prices before applying a discount"!

   • The investigation results are shocking: out of the verified advertisements,

     57% of the "discounts" offered no price reduction at all!

     19% had a smaller reduction than advertised! And even more surprisingly,

     11% of the items actually saw price increases!

   • This "profusion of crossed-out prices and permanent promotions" was designed to give consumers the impression of getting "very good deals," but in reality, they were being misled.

2. "Green" Promises Unsubstantiated: Environmental Claims Cannot Be Justified!

   • SHEIN's business model is based on an abundant supply of low-priced textiles. However, the DGCCRF stated that the company was unable to justify the environmental claims on its website, particularly its message presenting itself as a "responsible company" that would limit its environmental impact by reducing greenhouse gas emissions by 25%.

What Does This Mean?

This fine is not just a warning to SHEIN from France; it's a signal to the entire fast fashion and cross-border e-commerce industry:

• Compliance is the bottom line: No matter where you sell globally, understanding and strictly adhering to local consumer protection and advertising regulations is crucial.

• Transparency is the trend: Consumers are increasingly concerned about genuine prices, discounts, and corporate social responsibility. False advertising will face increasingly severe crackdowns.

• "Cheap" is no longer the only king: Relying solely on low-price strategies may not be sustainable; quality, compliance, and brand reputation will become more important.

Lessons for Sellers

This incident once again reminds us that in today's increasingly competitive global landscape, blindly pursuing sales while neglecting compliance is like drinking poison to quench thirst.

As cross-border e-commerce sellers, we should:

• Deeply understand target market regulations: Especially regarding price promotions, product descriptions, and environmental claims.

• Ensure promotions are genuine and effective: Before setting discounts, always verify the compliance of reference prices.

• Exercise caution with environmental or sustainability claims: Ensure all relevant claims are supported by sufficient evidence to avoid "greenwashing" suspicions.

The French DGCCRF stated that it will continue to monitor such practices and advises consumers to be wary of overly attractive promotional offers, as they can be misleading.

This "fine storm" undoubtedly rings an alarm bell for all cross-border e-commerce practitioners. Only by embracing compliance can we achieve steady and long-term growth!