Shein Agrees to Pay $100 Million to Settle U.S. FTC Probe: More Than 12,000 Consumer Complaints Over Delivery Delays and Other Issues, Equal to About 44% of Its Second-Quarter Profit
Shein has agreed to pay $100 million to settle an investigation by the U.S. Federal Trade Commission (FTC) into delivery delays and other customer complaints, a source with direct knowledge told Reuters in an exclusive report on October 23. The settlement is equivalent to about 44% of Shein's second-quarter profit.
In a statement to Reuters, Shein said it had "reached a constructive outcome with the FTC" and that additional information would be shared soon. An FTC spokesperson declined to comment. The FTC has not yet issued a formal announcement of the settlement, and details such as the payment arrangements, consumer redress and remedial obligations have yet to be formally published.
The investigation covered the delivery, order fulfillment and consumer-complaint handling of Shein's U.S. business. In July 2026, Shein disclosed in filings for its Hong Kong listing that its U.S. operations were under FTC investigation and warned that the probe could lead to significant financial costs.
On the complaints, FTC records reviewed by Reuters show that between January 2020 and June 2026 consumers filed more than 12,000 complaints about Shein involving more than $11 million in purchases. At least some relate to shipping: customers told the FTC and the Better Business Bureau that packages marked as delivered never arrived and that Shein's customer service did not resolve the issue. Reuters said it was not able to independently verify the substance of the complaints or whether they were ultimately resolved.
Founded in China and headquartered in Singapore, Shein sells its own-brand clothing and also operates a marketplace for third-party sellers offering everything from toys to household appliances and decor. Its shares have fallen about 22% from their September 1 listing price in Hong Kong, and the European Union's €3 fee on low-value e-commerce packages has also hit its European business. Reuters described the settlement as the latest setback for the fast-fashion retailer amid a regulatory and tax crackdown in Europe and the United States.
Related: Texas Reaches $3 Million Settlement With Temu Over Data Privacy and Product Safety
Source: GSM·USA
Source: GSM · USA (original Chinese edition)
Photo: 图：SHEIN 标志。来源：Wikimedia Commons，公共领域
