Shein Agrees To USD 100 Million Settlement with FTC Over Delivery Practices

Shein has agreed to pay USD 100 million to settle a US Federal Trade Commission (FTC) investigation into delivery delays and customer complaints, according to a person familiar with the matter. The settlement is equivalent to approximately 44% of the fast-fashion retailer’s second-quarter profit.

The Singapore-headquartered, China-founded company confirmed it had reached an agreement with the FTC but did not disclose the full terms. The regulator declined to comment.

Shein had previously warned investors in filings related to its Hong Kong initial public offering that the investigation could result in significant fines, potentially affecting its financial performance and operations.

The settlement adds to the company’s regulatory challenges across markets. The European Commission is investigating alleged illegal products listed on Shein’s marketplace, while French authorities have imposed penalties over cookie-tracking practices, discount pricing and order confirmation issues.

The company is also facing scrutiny over product safety and data exposure in the US. The growing regulatory pressure comes amid challenges to its cross-border e-commerce model, including additional costs in Europe and a reported decline in app downloads across several markets.