Shein in court: Is there a threat of a three-month lockdown in France?

Shein in court: Is there a threat of a three-month lockdown in France?

The reopening of the Shein store at BHV, a popular French department store, caused a stir. But after the first 15 days with around 150,000 visitors, the first changes in the mood of buyers can be seen. That reports Radio France. Visitors, like Corinne from Orléans, repeatedly express their disappointment about the limited product selection and the higher prices compared to the offers on the online platform. Another customer, Bruno, only noticed empty cash registers: during his visit he did not see any shoppers with bags or fully loaded shopping carts.

The initial euphoria quickly wore off. A union representative, who wishes to remain anonymous, is already reporting a decline in customer frequency and speaks of quiet sales areas that determine the image of the new store. This can also be explained by the departure of well-known brands such as Aesop and Lancôme. In addition, suppliers complain about repeated payment defaults, which management dismisses as temporary.

Online problems and legal challenges

But Shein's difficulties go beyond the physical retail space. The company is facing legal challenges after several run-ins with the law in the past. How BFM TV reports, Shein is summoned to court in Paris on Wednesday. There, a decision will be made on the possible temporary suspension of the platform, as the state demands “mise aux normes” steps to crack down on repeated violations, which extend to the sale of questionable products such as pedophile dolls.

According to a Shein spokesperson, the company will “cooperate 100% with the judiciary” and is already taking steps to prevent further violations. Recent actions include closing a portion of the site that allowed third-party sellers to offer products. However, the question remains whether this step is enough to avert the temporary closure. Experts believe it is unlikely that the platform will disappear from the market forever, but the judiciary is currently finalizing its decision on the lawsuit.

A look at regulatory measures

In the wake of these developments, the topic of regulating digital marketplaces is becoming increasingly relevant. The Digital Services Act (DSA) has been in force in the EU since February 2024 and aims to promote transparency, liability and security in digital spaces. In parallel, the E-Commerce Action Plan will strengthen control over product safety regulations and platform liability, as shown on editorialge can be read. Shein therefore has to compete in an ever-changing regulatory environment, which creates additional challenges for the brand.

It remains exciting to see how the situation will develop for Shein. The combination of empty shelves and legal difficulties is alarming and raises the question of how the e-commerce giant can overcome this crisis. The coming days and weeks will be crucial, not only for the brand, but also for consumer safety and markets as a whole.