Shein to pay $100 million to settle FTC investigation

Fast-fashion retailer Shein has agreed to pay $100 million to settle an investigation by the U.S. Federal Trade Commission (FTC). The probe focused on customer complaints regarding delivery delays and other service issues.

The settlement amount represents approximately 44% of Shein’s second-quarter profit. According to FTC records, consumers filed over 12,000 complaints involving more than $11 million in purchases between January 2020 and June 2026. Many of these complaints involved customers reporting that packages marked as delivered were never received, and that customer service failed to resolve the discrepancies.

This settlement follows increasing regulatory and tax pressures on the company in both the United States and Europe. In the European Union, new fees on low-value e-commerce packages and upcoming handling fees are expected to impact the company’s business model and margins.