The French National Contact Point (NCP) has agreed to pursue a case against Shein brought by two French Members of Parliament. The scope of the case is broad and covers compliance with French labour laws, compliance with the French Duty of Vigilance law, human rights and environmental due diligence, disclosure and greenwashing accusations. The French NCP will review Shein’s adherence to French national laws.
About the case
- On 20 June, two French Members of Parliament Dominique Potier and Boris Vallaud (both Socialist Party (PS) members) submitted a complaint to the French NCP against Shein for violations of national and international human rights and labour laws.
- The French NCP published an Initial Assessment on 20 October concluding that the case can proceed. This means that the NCP will further examine the issues raised, consult with the parties individually and then offer mediation to resolve the case.
- We do not have a copy of the original complaint and the Initial Assessment does not provide details of the specific allegations against Shein. The NCP’s Initial Assessment notes that the case and evidence relate to
- compliance with French national laws (including labour laws) governing the production and sale of products in France, in particular whether Shein’s actions comply with the French Duty of Vigilance law
- compliance with laws on human rights, working conditions, dignity at work and social dialogue
- due diligence with respect to subsidiaries, suppliers and subcontractors regarding human rights, working conditions, dignity at work, social dialogue and the environment
- potential negative impacts on human rights, the environment and consumer health
- compliance with OECD disclosure recommendations
- consumer interests.
Context
- The French NCP is located in the Ministry of Economy and Finance at the Directorate General of the Treasury. There is a tripartite decision-making structure involving four ministries, six trade unions and one business organisation. It can consult external experts when assessing cases.
- The French NCP is one of the most progressive NCPs. It has handled several high-profile cases, including against Vinci in 2018 on freedom of association and collective bargaining at its Cambodian subsidiary and against Michelin in 2013 on labour and human rights concerns and bribery allegations at an Indian factory.
- The complaint against Michelin is particularly noteworthy as the French NCP proposed substantial amendments to Michelin’s due diligence policy and published two follow-up statements in 2014 and 2016 on Michelin’s progress in adopting its recommendations. In its final statement, the NCP determined that Michelin had successfully integrated due diligence recommendations into both local and global policies.
- Shein has been the subject of significant campaigning in France and the US in 2023. We reported on the “Stop Shein” campaign launched by Place Publique, a centre-left political party in France. The petition calls on French Economy Minister Bruno Le Maire to regulate marketing practices that encourage overconsumption and to block websites or brands that launch more than 1,000 new designs every day (see RBC Alert of 18 June). The “Shut Down Shein” campaign in the US is calling for the brand to be held accountable for forced labour practices under existing US law (see RBC Alert of 2 April).
Implications
- The scope of this case is much broader than most NCP cases to date. It covers compliance with French labour laws and compliance with the French Duty of Vigilance law, which are generally handled through the French courts. It also includes greenwashing claims.
- We expect the French NCP to make a public judgment on whether Shein is adhering to the OECD Guidelines for Multinational Enterprises. NCP statements do not hold legal weight on their own. However, as the NCP is reviewing Shein’s adherence to French national law, a finding against the company could have future legal ramifications. The case is expected to be closed in 2024 (within 12 months).