SHEIN & Temu: How French Regulations Impact Fashion Sourcing
France has taken a decisive legislative step to curb the environmental and social costs of ultra-fast fashion. For procurement professionals, this move highlights the increasing demand for sustainable sourcing strategies and supply chain transparency.
In a move that could set a precedent across Europe, the French Parliament has approved a bill targeting low-cost, high-volume fashion giants such as SHEIN and Temu, by imposing eco-taxes, advertising bans and mandatory sustainability disclosures.
These proposed changes signify a comprehensive response to the growing problem of fashion overproduction and textile waste—challenges that procurement experts are increasingly acknowledging.
Impact on procurement and supply chains
The bill passed by France's Senate on June 10, 2025, looks to reshape the fast fashion landscape through legislative measures that procurement departments cannot afford to ignore.
With 337 votes in favour, the bill is now moving to a joint committee, a key step before final approval in compliance with EU regulations. One central aspect of the bill is the introduction of environmental surcharges on fast fashion items, which will inevitably impact procurement strategies.
Starting in 2025, each item sold by ultra-fast fashion brands will face a €5 tax (roughly US$5.80), increasing to €10 (roughly US$11.60) by 2030.
The surcharge will be capped at 50% of the item's retail price to maintain affordability while encouraging more sustainable consumer choices. Revenues from these taxes will support sustainable French fashion producers, enhancing competitiveness and broadening access.
Lubomila Jordanova, Founder and CEO of Plan A, stated on LinkedIn: “France’s Senate passed ground-breaking legislation targeting ultra-fast fashion brands like SHEIN and Temu, marking the most radical regulatory attempt yet to tackle the environmental crisis in fashion.”
For procurement leaders, these changes suggest a necessary shift toward suppliers who prioritise environmental responsibility.
Adjustments in marketing and advertising
The bill also targets consumer demand by banning advertisements for ultra-fast fashion on all media platforms, including social media and influencer marketing. As digital channels are pivotal in consumer engagement, procurement specialists must evaluate partnerships and marketing strategies to ensure compliance and avoid potential penalties.
Influencers promoting ultra-fast fashion products could face sanctions, underscoring a growing need for accountability in marketing tactics. This shift emphasises the strategic importance of aligning procurement goals with sustainable marketing practices.
The requirement for environmental transparency
Retailers will now be required to disclose essential environmental data alongside product pricing, including carbon emissions, resource usage and recyclability.
An eco-score system will be introduced to rate items, with this score impacting the level of taxation applied. Such transparency will fundamentally alter supplier relationships, with procurement departments incentivised to prioritise those with a higher eco-score.
Companies not meeting defined environmental standards could face penalties of at least €10 per item (roughly US$11.60), or up to 50% of the product's pre-tax price.
Marco Longhin, Global Circularity Manager at SHL Medical, commented on LinkedIn: “Seeing a strong positioning of France against fast fashion is a powerful sign in a period where sustainability seems forgotten behind economic pressure to grow.”
Effects on import dynamics
The most stringent measures within the bill target non-European ultra-fast fashion platforms.
However, major European retailers like Zara, H&M and Kiabi will still be subject to environmental disclosures but exempt from the advertising ban and higher surcharges.
While critics argue that this focus might reflect economic protectionism, procurement leaders see it as a clear indicator to re-evaluate and optimise cross-border sourcing strategies.
Proposed additional measures involve taxing packages imported from outside the EU and banning free returns to deter high-volume, low-cost imports.
These elements present new challenges and opportunities for procurement executives striving to balance cost efficiency with sustainability.
Vojtech Vosecky, Founder of The Circular Economist, noted on LinkedIn, “We have enough clothes for six generations. The fashion industry reached a tipping point. This could be the start of a new beginning.”
As the value of fast fashion advertising soared from €2.3bn (US$2.66bn) in 2010 to €3.2bn (US$3.7bn) in 2023, the mandate for regulatory reform grows stronger, leaving procurement leaders to consider how sustainable solutions can match inevitable shifts in the fashion and supply chain landscapes.
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