Already a concern for the government, this Asian e-commerce giant is now a concern for its competitors in France. Twelve French federations of trade and industry, together with a “hundred brands”announced on Wednesday, November 19, that they were suing Shein “unfair competition”.
Shein Models “based on non-compliance with the regulations applicable to all players established in France”confirmed in a press release the French Trade Council (CDCF) and several sectoral organizations.
In addition to CDCF, organizations representing mass distribution (FCD), clothing and textile industries (Alliance du commerce, FFPAPF, Ufimh, UIT, Fédération de la knitwear, de la lingerie et de la plage), jewelry (BOCI, UBH), toys (FCJPE), franchising (FFF) and online sales (Fevad) also take part in this process.
With this action“unprecedented scale”also followed by about a hundred brands including Coopérative U, Promod, Monoprix, Grain de Malice (clothing) and Besson (shoes), federations and companies “affirmed their determination to re-establish fair competition based on respect for the law”according to a press release. “They also demand recognition of the economic damage suffered” by traders established in France and “compensation in proportion to the loss”.
“Unfounded accusations”
“These accusations are baseless”Shein’s spokesperson reacted to Agence France-Presse (AFP). “It is regrettable that these perpetrators prefer legal confrontation to constructive dialogue”. “This initiative looks more like a boycott effort than a serious legal approach”Shein added.
This legal action was brought to the commercial court of Aix-en-Provence (Bouches-du-Rhône), where “Shein subsidiary in Ireland” For “unfair competition”as part of the judicial liquidation of the local menswear brand, Olly Gan, clarified in a press video conference Cédric Dubucq, lawyer for the federation and related companies.
This last one “will intervene voluntarily” during a pre-trial hearing scheduled for January 12 in Aix-en-Provence, where a procedural schedule will be set, pending a defense hearing, most likely “within twelve to eighteen months”according to Me Dubucq.
