PARIS, France: France’s data watchdog has slapped fast-fashion giant Shein with a hefty 150 million-euro (US$176 million) penalty, accusing the company of secretly placing tracking cookies on users’ devices even after they refused consent.

The retailer, a major player in the European market, said it would challenge the fine.

The Commission Nationale de l’Informatique et des Libertés (CNIL), which oversees consumer data protection, said its investigation found that Shein’s French website continued to install cookies despite users opting out. Cookies are considered personal data under European Union rules since they can identify shoppers and target them with ads, and websites must obtain explicit consent before using them.

“The size of this fine takes into account the fact that the company has ignored several obligations, by depositing cookies without users’ consent, not respecting their choices, and not correctly informing them,” the CNIL said. It also noted the scale of Shein’s reach in France, with 12 million visitors to its site each month.

Shein, founded in China and now headquartered in Singapore, rejected the ruling. “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 company said. It argued the penalty appeared “politically motivated rather than the result of fair and balanced enforcement.”

The retailer added it had cooperated with the CNIL since August 2023 and strengthened “all aspects” of its data protection practices.

The penalty, representing about two percent of Shein’s 7.7 billion-euro European revenue in 2023, comes amid broader criticism in France of ultra-cheap fast fashion. Lawmakers are advancing legislation that would restrict the sector, including measures that could ban Shein from advertising.