Shiseido's BPI Sues Shein Over Unauthorized Fragrance Sales

Shiseido's French subsidiary, Beauté Prestige Internationale (BPI), has filed a lawsuit against Shein for allegedly enabling the unauthorized resale of its licensed fragrance and cosmetics products. The company is seeking a total of €2.6 million in damages, comprising over €2.1 million for reputational harm and a further €500,000 for commercial losses.

BPI holds exclusive licences for the Issey Miyake, Narciso Rodriguez and Zadig & Voltaire fragrance brands. It markets these products through a selective network of authorized retailers who must sign contracts designed to preserve the luxury image of the brands. BPI alleges Shein has enabled the resale of its products outside this authorized network, either directly or through third-party sellers, despite not being an authorized distributor itself. The company says it has documented 37 listings of its products on Shein’s French website.

Court proceedings delayed as arguments conclude

After hearing arguments from both parties on October 13, the Marseille Commercial Court postponed its ruling. A decision is now expected on January 26. Lawyers representing Shein disputed BPI's figure of 37 infringing listings, putting the number at eleven and stating only one was a direct sale.

Shein defends its role as passive platform amid growing scrutiny

Shein describes itself as a mere 'hosting service provider' and argues this legal status exempts it from monitoring third-party sellers on its platform. BPI strongly disputes this characterization. The fragrance distributor argues Shein 'plays an active role' in promoting its partners’ products. Shein offers a vast range of low-priced products in more than 150 countries and claims to have 273 million customers worldwide, including 23 million in France. The platform lists around 250,000 products.

Case could set precedent for online luxury enforcement

The lawsuit represents a significant test for the luxury beauty sector. It examines whether selective distribution agreements, a cornerstone of brand image protection, can be enforced against fast-fashion marketplaces like Shein. François Ponthieu, representing BPI, stated, "Shein’s business model is unacceptable. We demand respect for the rules, not cut-throat competition." The case questions where liability lies when a platform facilitates sales that undermine a brand's controlled distribution strategy. Isabelle Leroux commented on the challenge, saying, "BPI appears unable to enforce the integrity of its distribution network."

The Marseille Commercial Court will issue its ruling on January 26 on whether Shein is liable for enabling unauthorized sales of BPI’s fragrance brands.