Shein to pay US$100 million to settle FTC investigation

Fast-fashion retailer Shein has agreed to pay US$100 million to settle an investigation by the U.S. Federal Trade Commission (FTC). The settlement follows more than 12,000 consumer complaints filed between January 2020 and June 2026, involving transactions totaling over US$11 million.

According to FTC records, the complaints primarily centered on logistics and customer service issues, including orders marked as delivered that never arrived and a failure by customer support to resolve these discrepancies. The US$100 million settlement represents approximately 44% of Shein’s second-quarter profit for 2026.

This legal resolution comes amid significant regulatory and economic pressure for the company. Shein is currently facing increased taxation and customs fees in both the United States and Europe. Additionally, the company has seen its stock price drop by 22% following its listing on the Hong Kong Stock Exchange in September 2026.