France’s Ministry of Ecological Transition has tasked the textile recycling organization Refashion with developing a penalty tax plan aimed at ultra-fast fashion brands, including Shein and Temu.
The government intends to impose additional financial penalties or taxes on these companies due to concerns regarding the environmental and social ramifications of their business practices.
Refashion is responsible for collecting fees from companies that import textiles into France, with the payment amounts influenced by the sustainability efforts of those brands.
The organization may utilize its ecomodulation system, which adjusts fees based on corporate behavior, as a basis for addressing the government’s request for new penalties.
Minister Monique Barbut has directed Refashion to create a penalty system that considers the durability of textiles and footwear sold within the country. She remarked in a LinkedIn post: “Ultra-fast fashion costs us a lot of money, ecologically and socially, and profoundly unbalances our reuse and recycling sectors. This is no longer acceptable.”
Should Refashion implement a durability-based penalty system, it will need to establish objective criteria for evaluating the lifespans of clothing and footwear.
This initiative is part of France’s broader political efforts to curtail the activities of ultra-fast fashion retailers. In 2025, legislation was enacted targeting companies like Shein and Temu, which capped the entry of new products into the market and introduced fines of seven to ten euros per item for future violations.
Additionally, the French government called on the European Commission last September to grant authorities the ability to swiftly remove online platforms that violate EU regulations, particularly those related to ultra-fast fashion brands, from search engine results.
In the same month, over 20 European textile and garment organizations urged for immediate regulations regarding ultra-fast fashion companies. Their proposals included taxing small-parcel shipments and eliminating customs duty exemptions for goods valued under €150 ($175.44).
Germany is also considering implementing mandatory disposal fees for fast fashion imports. Federal Environment Minister Carsten Schneider noted that existing collection systems are overwhelmed by excessive volumes.