Fast-fashion group Shein agrees to pay $100 million to settle US FTC probe: What is the case? What really happened?
Chinese fast-fashion retailer Shein will be paying $100 million, or ₹949.45 crore, to settle a US Federal Trade Commission (FTC) probe into delivery delays and other customer complaints, Reuters reported. The settlement, equivalent to 44% of Shein’s second-quarter profit, comes amid growing regulatory and tax pressures in the United States and Europe faced by the fast fashion brand.
According to the news agency, FTC records showed that consumers filed more than 12,000 complaints linked to purchases worth over $11 million between January 2020 and June 2026. Some complaints were reportedly regarding shipping issues, with customers reporting to the FTC and the Better Business Bureau. It alleged that packages marked as delivered by Shein never arrived. Customers also alleged that the company’s customer service failed to resolve their issues.
Shein, which was founded in China and is headquartered in Singapore.
The company confirmed to Reuters that it had “reached a constructive outcome with the FTC”, adding that more information would be shared soon. The FTC has not yet made a comment.
In filings for its Hong Kong initial public offering in July, Shein had warned that the US investigation could result in significant fines, reported Reuters. The company sells its own-brand clothing and also operates a marketplace where third-party sellers offer products such as toys , household appliances and home decor.
Also Read | France’s Shein Fee Is a Bad Fit for China Inc.
The US settlement comes as Shein faces additional costs and regulatory scrutiny in Europe. The European Union has imposed a €3 fee on low-value e-commerce packages, apart from an additional €2 handling fee that is due to take effect on November 1, taking the total to €5 per separate customs code.
Reuters reported that Shein’s shares had fallen 22% from their September 1 listing price amid concerns related to European fees.
The retailer, known for low-priced clothing, has also raised prices as the US and Europe have closed customs duty loopholes.
Meanwhile, Chief Executive Sky Xu had said last month that Shein would develop more higher-priced brands to improve profit margins.
It is said that the European Commission is investigating the company over allegedly illegal products on its marketplace.
Last year, France’s data protection authority fined Shein €150 million for improper use of cookies.
Sneha Biswas specialises in covering entertainment and pop culture, with a specialisation on Bollywood, Hollywood, OTT platforms, K-pop, K-dramas, and major developments in the US entertainment industry. She believes in telling stories that balance speed with substance, and in making entertainment journalism contextual, culturally aware, and reader-first rather than purely reactive.<br><br> With over six years of experience in digital media, Sneha currently serves as a Deputy Chief Content Producer at Live Mint. She has spent more than three and a half years with the HT Group and returned to the organisation in February 2025, joining Live Mint to uplift the entertainment section. Over the past year, she has been closely involved in entertainment coverage including breaking news, explainers, trend reporting, box office reports and analysis for the audience.<br><br> Sneha is Google News certified, having completed training focused on newsroom best practices, digital reporting, and SEO-driven content strategies. Her work reflects a strong understanding of audience behaviour, search trends, and the evolving consumption patterns of entertainment news across formats.<br><br> Prior to her current role, Sneha has worked across multiple content and editorial functions within digital newsrooms, building expertise in content planning, editing, and real-time coverage. Her professional interests lie at the intersection of entertainment, internet culture, and global pop trends.<br><br> Working for the National city team, Biswas closely follows global entertainment movements while maintaining a strong pulse on what is happening in India.
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