Fast-fashion group Shein agrees to pay $100mn to settle US FTC probe - Gulf Times

Business Fast-fashion group Shein agrees to pay $100mn to settle US FTC probe Settlement equals nearly half of second-quarter profit; FTC has received 12,000 complaints about Shein since 2020; regulatory headwinds in EU, US have slowed e-commerce growth Reuters/London October 24, 2026 | 12:00 AM A company logo for fashion brand Shein is seen on a pile of gift bags in Liverpool, Britain. The Chinese fast-fashion giant has agreed to pay $100mn to settle an investigation by the US Federal Trade Commission over delivery delays and other customer complaints, a source with direct knowledge told Reuters. (file picture) Chinese fast-fashion giant Shein has agreed to pay $100mn to settle an investigation by the US Federal Trade Commission (FTC) over delivery delays and other customer complaints, a source with direct knowledge told Reuters on Friday. The settlement, equivalent to 44% of Shein's second-quarter profit, is the latest to hit the online fast-fashion retailer facing a regulatory and tax crackdown in Europe and the US that has slammed the brakes on its growth. Shein, founded in China though headquartered in Singapore, said in a statement to Reuters that it had "reached a constructive outcome with the FTC", and that additional information would be shared soon. An FTC spokesperson declined to comment. The company had warned in July filings for its Hong Kong IPO that the US probe could lead to significant fines. Consumers filed more than 12,000 complaints about Shein over more than $11mn in purchases between January 2020 and June 2026, according to FTC records reviewed by Reuters. At least some of those relate to shipping, with customers reporting to the FTC and Better Business Bureau that they never received packages that Shein had marked as delivered, and that Shein customer service did not resolve the issue. Related Story Doha Bank prices $500mn bond under EMTN programme Impact of Houthi attacks on Saudi economy 'limited' for now: IMF Reuters was not able to independently verify the substance of the complaints, or whether they were ultimately resolved. As well as selling its own-brand clothing, Shein's website also operates as a marketplace where third-party sellers offer everything from toys to household appliances and decor. Shein shares have already dropped 22% from their September 1 listing price as investors realised the extent to which the European Union's €3 fees on low-value e-commerce packages have bruised its business there. And there's further pain ahead for Shein, with the EU imposing an additional €2 handling fee from November 1, making the total fee €5 per separate customs code. "The way these tariffs are implemented is extra punishing for Shein," said Mike Ryan, head of e-commerce insights at Smarter Ecommerce, who has tracked how Shein has dialled down its spending on Google Ads visibility in Europe. Shein was known for selling $5 dresses and $10 jeans, but has been forced to raise its prices as the US and then Europe closed customs duty loopholes. CEO Sky Xu said last month that Shein would develop more higher-priced brands in an attempt to boost profitability. Shein is also still under investigation by the European Commission over illegal products on its marketplace. It was fined €150mn ($168mn) by France's data protection authority over the improper use of cookies last year. It's not the first time the US FTC has taken action against online retailers over deliveries. US firm Fashion Nova was fined $9.3mn in 2020 for failing to meet shipping promises to customers and giving them gift cards instead of refunds. Crocs Inc-owned Hey Dude was also fined $1.95mn in 2023 for failing to notify customers of shipping delays and suppressing negative reviews. By Reuters/London October 24, 2026 | 05:02 PM RELATED ARTICLES Attacks on commercial shipping in strait of Hormuz hit record high in October October has been the worst month for attacks on commercial shipping in the Strait of Hormuz and nearby waterways, according to data compiled by a Washington-based think tank that has tracked maritime security incidents worldwide since 2017."October has seen the highest number of ship attacks on record," said Noam Raydan, a senior fellow at the Washington Institute for Near East Policy.Raydan, who maintains the institute's interactive shipping incident map, has recorded 28 confirmed and reported attacks in the Strait of Hormuz and surrounding waterways in October and 113 since the US-Israeli war with Iran began on February 28.The institute's map shows most of the attacks that took place in September and October were in the Strait of Hormuz.The tally broadly aligns with data from the International Maritime Organization (IMO), which recorded a total of 120 incidents in the Strait of Hormuz and the wider Middle East since the conflict with Iran began.The IMO lists more than 30 supertankers, or Very Large Crude Carriers (VLCCs), that were damaged during the attacks, including 11 in October alone, a Reuters review of the IMO list and MarineTraffic vessel data showed.Each VLCC can carry about 2mn barrels of crude. The listed vessels account for about 3.5% of the total global VLCC fleet, which exceeds 900.More tankers came under attack as shipowners became increasingly willing to load cargoes inside the Gulf, lured by daily freight rates exceeding $1mn and steeper discounts offered by regional producers against dated Brent."October 2026 has emerged as the most intense period of maritime attacks in and around the Strait of Hormuz since the escalation of hostilities in March," Greece-based consultancy Marisks said.Between October 5 and October 11, a dozen ships were attacked, marking also the highest weekly number of attacks since the conflict began, it also said.By intensifying attacks, Iran is seeking to slow the recovery in shipments and maintain pressure on global energy markets ahead of November's US midterm elections, Raydan said.Earlier this month, Reuters reported about Tehran adopting such tactics, citing two senior Iranian officials.UKMTO, the British maritime security service, which recorded 135 incidents related to the US-Iran conflict as of October 16, said it was struggling to capture the whole picture due to insufficient voluntary reporting by shippers.The UKMTO data also showed a sharp rise in ship damage caused by attacks in October. 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