Fast-fashion group Shein agrees to pay US$100mil to settle US trade probe
The settlement over delivery delays and other customer complaints, equivalent to 44% of its Q2 profit, adds to the regulatory and tax pressures facing the online retailer.
Chinese fast-fashion retailer Shein has reached a US$100 million settlement with the US Federal Trade Commission (FTC) to resolve allegations of delivery delays and customer complaints over more than 12,000 purchases totaling over US$11 million between January 2020 and June 2026. Shein, founded in China but headquartered in Singapore, admitted to the FTC that the settlement represents 44% of its second-quarter profit.
The company stated that it reached a constructive outcome with the FTC and that additional details would be shared in the future. The FTC declined to provide further comment. This is the latest in a series of regulatory and tax issues that have impacted Shein's growth, as the company faces scrutiny in Europe and the US. The European Union has imposed additional fees on Shein's low-value e-commerce packages, and the company is also under investigation by the European Commission over illegal products on its marketplace.
Shein's shares have already dropped 22% since its September 1 listing, reflecting the impact of these challenges.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Fast-fashion group Shein agrees to pay US$100 million to settle US FTC probe businesstimes.com.sg
- Fast-fashion group Shein agrees to pay US$100mil to settle US trade probe freemalaysiatoday.com
- Fast-fashion group Shein agrees to pay US$100m to settle US FTC probe straitstimes.com
