According to GlobalData apparel analyst Louise Deglise-Favre, France which has proposed to a €5 levy on fast fashion, which will rise to €10 by 2030, may have a drastic impact on the country’s apparel retail.

The proposal was approved in the French National Assembly in April 2024, even though it still needs approval from the French Senate before being adopted.

“If passed, the levy could deeply change the state of the French clothing sector and make it highly uncompetitive,” Deglise-Favre said.

The goal of the law is to make fast fashion brands costlier and so less appealing to consumers in France, so that they may pick more sustainable alternatives or limit their clothing usage.

The fee will be determined by ‘eco-scores’ designed to reflect the impact of each product of a brand and these brands would be mandated to display these scores in stores and online.

“It is not clear how these scores would be decided, and implementing these for fast fashion brands like Shein that releases thousands of new fashion items each week is unrealistic,” the analyst added.

It is likely that the funds raised by the levy on fast fashion may be used to make sustainable garments more affordable for consumers.

The new proposed law also includes a ban on advertising for cheap textiles and apparel with the aim to push the fashion industry towards more sustainable alternatives.

“This would significantly reduce visibility of these brands making these brands less visible in the French market which would further impact their revenues,” Deglise-Favre stated.