Cosmetics company sues Shein for unfair competition - Fashion United

Marseille - A French company, part of the Japanese cosmetics group Shiseido, demanded over 2.6 million euros from e-commerce giant Shein in court on Tuesday. The claim is for marketing beauty products without being an authorised reseller. The Marseille Economic Activities Tribunal has deferred its decision until January 26. This follows a hearing on Tuesday involving a complex legal argument over commercial law and case law references. The legal action was initiated by the perfume and cosmetics group Beauté Prestige Internationale (BPI). BPI distributes the Shiseido group's brands and also holds exclusive licences for the Issey Miyake, Narciso Rodriguez and Zadig & Voltaire brands. BPI markets its products through major cosmetics retailers. These retailers are required to sign contracts to “preserve, for the consumer, the luxury character attached to the products and brands”. Founded in China in 2012 and now based in Singapore, Shein sells the ultra-fast fashion clothing on its website that has driven its success. It also hosts thousands of items offered by third-party resellers on its marketplace. BPI accuses the marketplace of reselling its products, either directly or through these third parties, without being part of its authorised distribution network. The French company is claiming over 2.1 million euros from the Asian giant for reputational damage and 500,000 euros for commercial damages. “BPI is unable to enforce the integrity of its distributor network,” stated Isabelle Leroux, who represents two Ireland-based Shein companies. Leroux also cast doubt on the French company's contracts with its distributors and argued for the summons to be nullified. “Shein's development model is unacceptable. We demand respect for the rules, not unregulated competition,” retorted François Ponthieu, BPI's lawyer. He accused the group of “profiting from its investments and its image”. In recent years, Shein has become the symbol of ultra-fast fashion. The company now finds itself targeted by multiple European and French initiatives attempting to regulate its operations. Email address Continue OR CONTINUE WITH Beauty Lawsuit Shein