France's penalty tax on ultra-fast fashion takes effect

France's financial penalty on disposable fashion items, a key measure of the anti-fast fashion law passed by the French Parliament this summer, takes effect on Tuesday, September 1. The penalty, which can reach up to €19.50 per item by 2030, is capped at 50% of the pre-tax price. The measure targets ultra-fast fashion companies like Shein, which offers over 1.7 million references annually, compared to traditional retailers like Zara with about 20,000. The penalty is calculated based on sales volumes and repair incentives, with examples including €0.50 for underwear, €2 for a T-shirt, €9 for jeans, and €12 for a jacket in 2026. The eco-organization Refashion will collect the fee. Other provisions, such as consumer awareness requirements and advertising bans, will take effect early next year. The European Commission has cleared the law, and China has threatened retaliation.