France started imposing penalties on extreme fast-fashion e-commerce sites, including Shein and Temu, on Tuesday to curb a surge in sales of cheap clothing. ^[1] Shein's valuation plunged ahead of its stock market debut in Hong Kong on Tuesday due to the end of duty-free access for cheap e-commerce parcels in the European Union and the U.S. ^[2] The penalties are part of a fast-fashion law passed in June that aims to address environmental concerns from overproduction. ^[3] The penalties range from €0.25 (30 U.S. cents) for a pair of boxer shorts or socks to €12 ($14) for a coat, with the amount capped at 50% of the product's pre-tax sales price. ^[4] China's commerce ministry has labeled the French law discriminatory and a potential violation of WTO principles. ^[5] The sanctions, part of a law approved in June, range from US$0.29 for underwear to US$13.92 for a coat, capped at 50% of the pre-tax selling price. ^[6] Shein's valuation dropped after the end of tariff exemptions for cheap e-commerce packages in the EU and US, adding to the difficulties caused by the new French sanctions. ^[7]