Historic Legal Battle: French Trade Federations and Brands Sue Shein for Unfair Competition

Twelve French trade federations along with about one hundred brands have initiated an unprecedented legal action against Chinese e-commerce giant Shein, accusing the company of unfair competition and causing significant economic harm to local businesses. This collective lawsuit, involving sectors such as retail, textiles, and jewelry, targets Shein's business practices, which the plaintiffs allege violate French regulations that apply to all companies operating in France. They claim that Shein’s model allows it to cut costs illegitimately and capture market share at the expense of compliant French firms, with damages possibly reaching several hundred million euros.

The legal action is historic in scale and nature, representing a first in the French commercial landscape. The complaints highlight the company's repeated non-compliance with regulations, including ongoing government scrutiny due to concerns like the sale of controversial products. Major brands involved include Promod, Coopérative U, Monoprix, Besson, and Grain de Malice.

The French government has voiced its support for this lawsuit. Serge Papin, Minister for SMEs, affirmed that this action marks an end to the impunity of platforms practicing dumping, underlining the administration’s stance against unfair e-commerce practices.

Shein, through its spokesperson, dismissed the accusations as unfounded and characterized the legal initiative as a boycott attempt rather than a genuine legal challenge, citing that the pursuit deviates from the established French and European competition laws aimed at protecting innovation and consumer choice.

The case will be heard by the commercial court of Aix-en-Provence, with an initial procedural hearing slated for January 12, 2026. This preliminary session will set the timeline for proceedings, with a substantive trial anticipated within the next 12 to 18 months. Plaintiffs aim for recognition of economic damages over the past five years and appropriate reparations.

This legal confrontation not only represents a pivotal moment for French commerce but also highlights an escalating global contest over regulatory compliance and fair competition in the digital retail sector.