Shein Faces Prosecutor After French Parliament Snub

The e-commerce giant Shein has been referred to the public prosecutor after its representatives failed to appear before a committee of the French National Assembly on Tuesday. The company, which maintains its global headquarters in Singapore, had previously indicated it would not attend until a court had ruled on its suspension. While the potential fine for this refusal is a modest €7,500, Renaissance MP Sandrine Le Feur, chair of the National Assembly's Committee on Sustainable Development and Spatial Planning, described it as "symbolic" given the fast-fashion brand's "disrespectful" attitude.

This latest development follows a series of regulatory challenges for Shein in France. The company has already incurred substantial penalties this year, totaling €191 million, for issues such as false promotions and misleading information. The current parliamentary scrutiny stems from the discovery of illicit items, including child-like sex dolls and Category A weapons, being sold on its platform at the end of October. This prompted Shein's initial summons on November 18 to appear before the Assembly's fact-finding mission on imported product checks.

The Sustainable Development Committee subsequently took over the inquiry, summoning Shein on November 26 and again on December 2. On each occasion, Shein requested a postponement, citing ongoing legal proceedings initiated by the French government regarding its suspension. Last week, the Asian group sought yet another delay, arguing its wish to await the Paris Judicial Court's decision on the state's request for its suspension due to the banned products it had been selling.

Ms. Le Feur, however, dismissed Shein's explanation, stating that "MPs respect ongoing investigations and the separation of powers, and so this inquiry is absolutely no excuse." Expressing her shock at Shein's "three refusals," she confirmed that referring the matter to the public prosecutor was "a first" for a standing committee of the Assembly. Ms. Le Feur's office confirmed to AFP that the referral was expected to be made on Tuesday evening, emphasizing that Shein's behavior, particularly its request for a "preliminary interview" to ensure the hearing "takes place properly," was "not acceptable."

In response to the referral, Shein issued a statement to AFP, confirming it had taken "note" of the decision and "reaffirms its willingness to participate in the work" of the committee. However, the company reiterated its stance: "We consider that any contribution must be made with due respect for the ongoing legal proceedings and once the expected decision of the judicial court has been handed down."

The incident also has broader parliamentary and European ramifications. A cross-party motion for a European resolution is slated for submission to the Assembly's European Affairs Committee on Wednesday. This motion aims to alert Brussels and advocate for the platform's suspension at the EU level. Furthermore, on December 10, the "excesses of e-commerce platforms" will again feature on the parliamentary agenda with the presentation of the fact-finding mission's report on imported product checks.

Prior to these parliamentary discussions, Shein is scheduled to appear in court on Friday. The state will seek a three-month suspension of the site, with a potential reopening contingent on specific conditions and supervision by Arcom, the digital regulator. However, the Paris public prosecutor's office indicated last week that a three-month blocking order might be considered disproportionate, citing case law from the European Court of Human Rights.

In anticipation of a first attempt at suspension in early November, Shein had already taken steps to address concerns. The group withdrew offending products and halted all sales made on its French site by third-party sellers, its "marketplace," as well as all non-clothing sales.