Fast-fashion retailer Shein has agreed to pay $100 million to settle a US Federal Trade Commission (FTC) investigation into delivery delays and other customer complaints, adding to the regulatory pressures facing the global online shopping company.
The proposed settlement, reported on Friday, October 23, is equivalent to about 44 per cent of Shein’s second-quarter profit. The investigation comes amid growing scrutiny of the company’s customer service and business practices in major markets.
Records reviewed by investigators showed that consumers lodged more than 12,000 complaints concerning purchases worth over $11 million between January 2020 and June 2026. Some customers reported that packages marked as delivered never arrived, while others complained that their problems remained unresolved after contacting customer service. The allegations have not all been independently verified.
Shein said it had reached what it described as a constructive outcome with the FTC and would provide further information. The agency declined to comment on the reported agreement.
Founded in China and headquartered in Singapore, Shein is also facing regulatory challenges in Europe. The European Commission is investigating products listed on its marketplace, while France fined the company €150 million last year over its use of online tracking cookies.
The retailer’s shares have fallen 22 per cent from their September 1 listing price as investors assess mounting regulatory and cost pressures. Additional European Union fees on low-value e-commerce packages are also expected to increase costs for cross-border sellers from November 1.
The settlement could add to the financial burden on Shein as it seeks to sustain growth and maintain its competitiveness in international markets.
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