France fines Shein $176 million over cookies

By Helen Reid

PARIS (Reuters) -Online fast-fashion retailer Shein received a 150 million euro ($175.61 million) fine on Wednesday from France's data protection authority over the improper use of cookies, a decision the company contested and said it would appeal.

The Commission Nationale de l'Informatique et des Libertés (CNIL), a government body charged with enforcing consumer data protection, said Shein's website failed to comply with regulations in collecting consumers' data without consent.

When users browsing Shein's French site opted out of cookies - small files that allow websites and advertisers to identify individual users and track their browsing habits - some were still found to be placed on the user's computer regardless, the commission said in a statement detailing a test it conducted on the site in August 2023.

Under the European Union's General Data Protection Regulation, cookies are considered personal data because they are used to identify shoppers and target them with ads, and websites must obtain consent to use them.

"The size of this fine takes into account the fact the company has ignored several obligations, by depositing cookies without users' consent, not respecting their choices and not correctly informing them," the CNIL said in a statement.

Shein's scale also fed into the decision, the commission added, saying 12 million French residents visit the site every month.

Shein said it "firmly contests" the CNIL's decision and will file an appeal.

"We consider the fine to be wholly disproportionate, given the nature of the alleged issues, our current full compliance, and the proactive corrective actions we have taken," the fast fashion retailer said in a statement.

Shein said it had fully cooperated with the CNIL since August 2023 and strengthened "all aspects" of its data protection practices.

The company, which was founded in China and is headquartered in Singapore, said the size of the fine "appears politically motivated rather than the result of fair and balanced enforcement".

Shein, which sells 12-euro dresses and 20-euro jeans, has faced criticism in France, where lawmakers have backed a draft law regulating fast fashion that would, if implemented, ban Shein from advertising.

The 150-million-euro fine represents around 2% of the 7.684 billion euros in revenue Shein's Ireland-registered entity reported it made in Europe in 2023, the most recent year for which there is official data.

(Reporting by Helen Reid and Leigh Thomas; Editing by Sonali Paul)