Shein disclosed a U.S. Federal Trade Commission (FTC) investigation in its Hong Kong IPO prospectus, and Reuters reported the company agreed to pay $100 million to resolve it, citing a source with direct knowledge.
Reuters reported Oct. 23 that the agreement concerns delivery delays and other customer complaints. Shein told Reuters it had reached a “constructive outcome” with the FTC. The regulator declined to comment. Shein’s statement did not specify an amount, and the FTC has not confirmed the reported payment or terms.
Reuters said the reported $100 million payment equals 44% of Shein’s second-quarter profit. The company’s Aug. 24 prospectus said it was cooperating with the FTC’s investigation of its U.S. business operations and warned that the inquiry could lead to significant monetary payments. The filing did not describe the conduct under review or give a settlement amount.
Reuters said its review of FTC records found more than 12,000 complaints about Shein tied to purchases worth more than $11 million from January 2020 through June 2026. Some consumers said orders marked as delivered had not arrived and that customer service had not resolved their complaints. Reuters said it could not verify the accounts or determine whether the complaints were later resolved. The records document complaints, not an FTC conclusion that Shein violated the law.
The FTC has taken action against other online retailers over shipping and refund practices. In 2020, Fashion Nova agreed to pay $9.3 million for consumer refunds after the agency alleged it failed to notify customers about delays and gave gift cards instead of refunds for unshipped goods. In 2023, Hey Dude agreed to pay $1.95 million in a case involving shipping delays, refunds and negative reviews. Those earlier cases do not establish what the FTC alleges against Shein or the legal basis for its investigation.
