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French Appeals Court Rejects Shein Marketplace Suspension Over Illegal Listings Case

The decision leaves EU regulators to press their Digital Services Act investigation into alleged illegal product listings.

Overview

  • A Paris appeals court upheld an earlier ruling, deeming a full shutdown of Shein’s third-party marketplace disproportionate despite acknowledging “serious harm to public order.”
  • Judges maintained limits on sales of certain adult products unless robust age‑verification systems are implemented.
  • The dispute began after reports last fall of child‑like sex dolls and other prohibited items on Shein’s site, which the company removed after temporarily halting its adult‑products category.
  • The European Commission has opened its first DSA proceeding into Shein over illegal goods, exposing the platform to potential fines of up to 6% of global turnover.
  • Separately, a coalition of French retail federations and major brands has sued Shein’s Ireland‑based European unit over alleged unfair competition and product‑safety compliance.