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Judge raises eyebrows after announcing decision for online retail giant caught selling illegal products: 'Quite an interesting punishment'

The court acknowledged the retailer caused "serious harm to public order."

A French court declined the government's request to suspend Shein's operations but acknowledged the retailer caused serious harm to public order.

Photo Credit: Depositphotos.com

On Dec. 19, a French court declined the government's request to suspend a massive fast fashion company selling questionable goods in the country, according to Courthouse News.

What's happening?

In October, internationally prominent retailer Shein became the focus of public scrutiny in France, due to its alleged sale of weapons and nefariously "childlike" dolls marketed for illicit purposes.  

France's Directorate-General for Competition Policy, Consumer Affairs, and Fraud Control (DGCCRF) raised alarms about the latter, calling the purpose of the dolls "difficult to doubt," and Courthouse News noted that 20 men throughout France have reportedly been arrested for purchasing the dolls.  

In early November, France cracked down on Shein, seizing more than 200,000 incoming packages for inspection, The New York Times reported, finding about 80% of the items to be in violation of law in one way or another, though Shein attorneys disputed this in court. At the time, French foreign minister Jean-Noël Barrot said that Shein was "evidently in breach of European rules."

The DGCCRF "filed a complaint" against Shein as a result of the controversy, urging French courts to impose a 3-month suspension on the retailer in France.

In a Dec. 19 ruling, a Paris court declined the request, deeming it "disproportionate," according to France 24. However, the court acknowledged Shein caused "serious harm to public order."

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Why is this concerning?

In this instance, France took action against Shein over specific categories of its stock, ones that posed risks to public safety.

However, Shein has come under fire for myriad reasons and in several countries. 

Even in business-friendly Texas, lawmakers recently opened an investigation into whether Shein uses "toxic chemicals" in its wares and into its data collection practices.

Shein's low prices have long been linked to exploitative labor practices, which have also frequently prompted government inquiries or action.

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As a fast fashion giant, Shein has sparked ongoing environmental controversies, including sustainability and pollution concerns, and the creation of excess textile waste.

Moreover, Shein has attracted criticism for misleading claims about its environmental impact, a form of greenwashing, and France fined the company $47 million earlier this year.

What's being done about it?

Although French judges declined to fully end or suspend Shein's operations in the country, Shein had suspended its French marketplace on Nov. 5 while banning adult product sales worldwide on the heels of the lawsuit, per Reuters, and one expert considered the legal maneuvering and threat of suspension to be a considerable deterrent.

"Data, in some cases, might have a lifespan of weeks — so interrupting the updating of that data seems to be quite an interesting punishment," said Harvard Business School marketing professor John Deighton.

French officials planned to appeal the court's ruling.

What should the government do about the fast fashion industry?

Set strict regulations 🚫

Incentivize sustainable options 💰

Use both regulations and incentives 🏛️

Nothing 🙅

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