Fast-fashion group Shein agrees to pay US$100m to settle US FTC probe

Fast-fashion group Shein agrees to pay US$100m to settle US FTC probe Sign up now: Get ST's newsletters delivered to your inbox Shein faces a regulatory and tax crackdown in Europe and the US that has slammed the brakes on its growth. PHOTO: REUTERS Published Oct 23, 2026, 10:39 PM Updated Oct 23, 2026, 11:11 PM Set as preferred source Listen Summarise Shein will pay US$100 million to settle a US FTC probe into delivery delays and customer complaints, after warning the case could bring major fines. The deal equals 44% of Shein’s second-quarter profit and adds pressure on its growth as regulators in the US and Europe tighten scrutiny. Shein said it had “reached a constructive outcome with the FTC”, while it still faces EU and French investigations and falling app downloads. AI generated LONDON – Chinese fast-fashion giant Shein has agreed to pay US$100 million (S$127.8 million) to settle an investigation by the US Federal Trade Commission (FTC) into delivery delays and other customer complaints, a source with direct knowledge of the matter told Reuters on Oct 23. The settlement, equivalent to 44% of Shein’s second-quarter profit, is the latest to hit the online fast-fashion retailer, which faces a regulatory and tax crackdown in Europe and the US that has slammed the brakes on its growth. Shein, founded in China but 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 initial public offering that the US probe could lead to significant fines. Shein shares have already dropped 22% from their Sept 1 listing price as investors have grasped the extent to which fees on e-commerce packages imposed by the European Union have dented its business there. Jefferies analysts said Shein’s app downloads across 10 markets were down 42% in September from a year ago. Shein is also still under investigation by the European Commission over illegal products on its marketplace. It was also fined €150 million (S$214.8 million) by France’s data protection authority in 2025 for the improper use of cookies. It is not the first time the FTC has taken action against online retailers over deliveries. US company Fashion Nova was fined US$9.3 million in 2020 for failing to meet shipping promises to customers and giving them gift cards instead of refunds. Crocs-owned Hey Dude was fined US$1.95 million in 2023 for failing to notify customers of shipping delays and suppressing negative reviews. REUTERS More on this topic Shares of fast fashion’s Shein plunge 14% to record low after profit slides Shein makes lacklustre HK debut as investors fret about growth and regulatory risks See more on Retail Design United States Trade