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France wants to tax fast fashion

The Assemblée nationale, the French Parliament, voted unanimously in favor of a law to limit and penalize fast fashion which, with a constantly renewed offer of low-priced clothes, leads to overproduction, overconsumption and often conditions of deplorable work. The proposal of Horizons, one of the three majority groups, was adopted at first reading on March 14, making it happen once again from France a cutting-edge signal to the rest of Europe, this time in terms of sustainability. The text will then have to pass to the Senate for final approval.

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Il minister of the ecological transition Christophe Béchu (Beyond the Alps there is a ministry dedicated solely to issues related to transition) commented enthusiastically on the passage of the law at first reading, which will make “France the first country in the world to legislate to limit the drift of ultra-fast fashion” . He thus introduces a further distinction between fast and very fast fashion. To fully understand Horizons’ proposal, let’s take a step back and examine the context.

photo "> Customers queuing in Paris in front of the H&M maxi store opened next to the historic Galeries Lafayette (2018)

Customers queuing in Paris in front of the H&M maxi store opened next to the historic Galeries Lafayette (2018)

The local media explain that the clothing market in France is saturated by fast fashion brands, which has had the first consequence the drastic decline, to the point of bankruptcy in some cases, of some national ready-to-wear brands that were still very trendy in the early 2000s, such as the Parisian Naf Naf or Kookai. But even before the economic reasons, the ministry was moved by environmental ones. “The textile industry is the most polluting, accounting for 10 percent of greenhouse gas emissions,” said Anne-Cécile Violland, MP for Horizons.

What the law states

First of all, we define which companies end up under the fast fashion label, on criteria based on volume and speed of production and renewal of collections. The current text refers to decrees to set numerical thresholds. In the sights of legislators there are brands such as the Chinese giant Sheinwhich with its 7,200 new clothing models per day on average, we learn, offers “900 times more products than a traditional French retailer“. As a result of the law under discussion, therefore, fast fashion companies would have the obligation to raise consumer awareness of the environmental impact of their garments and accessories, encouraging reuse practices and reporting all the information on e-commerce sites.

photo "> A Shein pop-up store in New York

A Shein pop-up store in New York

The most discussed measure in the French text against fast fashion was immediately labeled as a tax against polluting brands. It’s actually about and malus rather penalizing, a surcharge for sellers which by 2030 could reach up to 10 euros for each item outside environmental standards. To implement similar measures, it will be necessary in advance establish a new product classification system, on sustainability standards. In practice, for companies it is necessary to imagine a penalty of up to 50 percent (excluding VAT) on the price of each item sold. Taking an example of Releaseif a sweater costs 8 euros, the company will pay 4, up to a maximum penalty of 10 euros.

“It is not a tax”, Anne-Cécile Violland specifies, however, since, in a system of bonus-malus, the contributions will be redistributed in favor of virtuous companies, based on circularity and green practices, and possibly local. The proceeds will also be allocated to collection, sorting and treatment of textile waste and finally ad increase the repair bonus already in place, i.e. the reimbursement that encourages you to opt for mending the old one rather than purchasing the new one.

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Another fundamental measure of the Horizons law concerns advertisingthat would prohibited “for products and businesses” that fall into the fast fashion category. Aggressive marketing is usually inherent to the practices of this rapidly changing fashion. Commercials that travel at even higher speed on social networks, thanks to huge followings influencer. As a result of the provision, at least the French ones could no longer accept commercial collaborations to sponsor their clothing collections.

The reactions

There will still be some points to discuss. For example, ecologists, radicals of Insubordinate and socialists have requested, at the moment in vain, to impose in the text criteria for respecting social rights in the textile industry. The group of NGOs gathered under the acronym Stop Fast Fashion asked French parliamentarians to define thresholds that would allow them not only to penalize Shein or Temu (Chinese e-commerce portal) but also other giants such as Zara, Primark, H&M. A Shein spokesperson commented on the law as a “disproportionate penalty for the most cost-conscious consumers” while estimating that the fee for defining fast fashion should be based on other references, such as the amount of unsold goods. The general director ofCommerce Alliance Frenchman, Yohann Petiot, expressed fears that the text could “miss the target” and have an impact on national companies. Although still to be perfected, the scope of the text that sanctions fast fashion remains undoubted.

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– 2024-03-28 16:12:39

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