Fast-fashion group Shein agrees to pay US$100 million to settle US FTC probe
It is also still under investigation by the European Commission over illegal products on its website
US fast-fashion retailer Shein has agreed to pay US$100 million to settle an investigation by the US Federal Trade Commission (FTC) over delivery delays and other customer complaints, according to a source with direct knowledge. The settlement represents 44% of Shein's second-quarter profit and is the latest in a series of regulatory and tax crackdowns that have hindered the online fast-fashion retailer's growth.
Shein, founded in China but headquartered in Singapore, stated that it had reached a constructive outcome with the FTC and promised to share further information soon. The company had previously warned that the US probe could lead to significant fines. Over 12,000 consumer complaints were filed against Shein, mainly concerning shipping issues, such as never receiving packages marked as delivered and poor customer service response.
Despite selling its own-brand clothing, Shein's website also operates as a marketplace for third-party sellers. The company's shares have dropped 22% since its Hong Kong IPO listing, with additional EU fees set to further impact its business. Shein is also under investigation by the European Commission for illegal products on its marketplace, and has faced fines in France and the US for shipping delays and suppressing negative reviews.
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- 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
