Chinese fast-fashion company Shein has agreed to pay $100 million to settle a US Federal Trade Commission investigation concerning delivery delays and customer complaints. This settlement represents 44% of Shein’s profit for the second quarter and is part of a broader regulatory and tax scrutiny the company faces in Europe and the US.
Shein, which originated in China and is now based in Singapore, confirmed it reached a constructive outcome with the FTC and will provide more details soon. The company had noted in its IPO filings that the investigation could lead to significant fines. Between January 2020 and June 2026, consumers filed over 12,000 complaints against Shein regarding more than $11 million in purchases, many of which involved issues with shipping where packages were marked as delivered but never received.
Shein’s shares have fallen by 22% since its September 1 listing due to concerns over European Union fees affecting its e-commerce business. Additionally, Shein’s app downloads decreased by 42% in September compared to the previous year. The company is also under investigation by the European Commission for illegal products on its platform and has faced fines for data privacy violations.
With information from Reuters
