Thank you, Madam Chair.
Members of the committee, thank you for inviting me.
My name is Damien Silès and I'm the chief executive officer of the Conseil québécois du commerce de détail, or CQCD.
The CQCD represents most Quebec retailers of all sizes and in all sectors. We're here today to draw your attention to a now-major issue for the future of Canadian retail: the rapid rise of ultra-fast fashion and foreign platforms, such as Temu and Shein, offering merchandise at very low prices.
Let me be very clear: The CQCD is not asking for protectionism. We're just asking for a level playing field. Canadian retailers are okay with competition. They innovate, invest and adapt, but they're asking that businesses that sell massively to Canadian consumers be subject to the same rules, obligations and standards, and that's not the case.
Ultra-fast fashion is no longer a marginal phenomenon. For a while, many thought Temu and Shein were just a fad, but our data shows the exact opposite. By April 2026, 30% of those contacted in Quebec said they'd purchased on Temu in the last six months, and 19% had purchased on Shein. Moreover, the frequency with which people make purchases on these platforms is sharply increasing. It's no longer occasional impulsive purchases; we're talking about recurring purchases, sometimes weekly.
There's a significant competitive inequity. Canadian retailers have to comply with an important set of obligations. They pay taxes, meet safety standards, enforce labelling requirements, bear environmental costs and manage returns, product recalls, regulatory compliance and traceability. The problem is when foreign platforms can access the Canadian market without the same level of constraints or controls. This creates a concerning situation where compliance becomes a competitive disadvantage.
Consumer safety is also at stake. Trade is based on a key element: trust. When a consumer buys a product in Canada, they must be able to assume it's safe, compliant, traceable and properly labelled. However, many investigations have raised concerns about certain products sold on foreign platforms, including potential presence of prohibited substances, non-compliant children's products, recall issues, poor traceability, and so on.
Again, the rules aren't the issue; it's their uneven application. No matter where a platform is, if they're selling to Canadians, they have to meet Canadian standards.
We're also facing a major environmental issue. Ultra-fast fashion is based on a simple model: high volume, very low price and quick renewal. As a result, there's more waste, more packaging, more deliveries and more unsustainable products that are naturally more difficult to recycle. The environmental costs of ultra-fast fashion are still largely passed on to people.
Now, allow me to explain why federal intervention is necessary. This issue goes beyond provincial boundaries, as it concerns international trade, customs, taxation, product safety, competition and consumer protection. In short, this is a federal responsibility.
We have three recommendations to make. First, ultra-fast fashion must be legally defined. There's no clear definition at the moment. Without a definition, it's difficult to target practices, carry out inspections, provide oversight and apply appropriate measures. We are therefore asking for a legal definition that clearly identifies this business model. We want a targeted definition, not a measure against the entire fashion industry.
Second, federal inspection and enforcement capabilities must be strengthened. Canada already has rules. The real issue is often the capacity to enforce them. We're asking for additional resources to increase inspections, strengthen customs control, improve coordination between agencies, further verify product compliance and clarify platforms' responsibilities.
Third, we recommend launching a national awareness campaign. Consumers are attracted to low prices, but many are still unaware of the real consequences of this model, particularly regarding product safety, product lifespan, the environment, privacy and local businesses. We're not proposing to limit consumer choice, but rather to better inform the consumer.
In conclusion, I'd like to leave you with a very simple message: Canadian retailers are not asking for special treatment; they're simply asking for fairness. You can count on the support of the CQCD.
Thank you very much for giving me the floor. I'll be happy to answer questions later.