Shein discloses FTC probe in US, warns of significant payments - The Standard (HK)

City Voices Trending Hong Kong Business International Racing Lifestyle Showbiz Sport Opinion Games ePaper City Voices Trending Hong Kong Business International Racing Lifestyle Showbiz Sport Opinion Games BUSINESS FINANCE Shein discloses FTC probe in US, warns of significant payments FINANCE 2 hours ago A customer holds shopping bags with a Shein logo in the first physical space of online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS Shein, the online fast-fashion retailer, said its U.S. operations are under investigation by the U.S. Federal Trade Commission and that it could face significant fines as a result, according to documents filed in connection with its planned Hong Kong IPO. ADVERTISEMENT SCROLL TO CONTINUE WITH CONTENT Shein is cooperating with the probe, the Chinese-founded company said in the documents published by the Hong Kong stock exchange on Sunday. "The outcome of the investigation, whether in settlement or otherwise, may require us to make significant monetary payments that could have a material adverse effect on our financial condition and results of operations," the company said in the filing. An FTC spokesperson confirmed on Tuesday the agency is conducting a consumer protection investigation into Shein. The FTC enforces U.S. laws against unfair and deceptive business practices. Shein did not disclose why it was under investigation. The company did not immediately respond to a request for comment. The fast-fashion retailer shifted its IPO plans to Hong Kong after supply-chain risk disclosures became a major obstacle to proposed listings in New York and London, according to a source with direct knowledge of the matter. China's regulator objected to language in the filing that identified Uyghur forced labor as a potential risk, the source said. Shein has consistently maintained there is no forced labor in its supply chain. Last year, Shein said in a letter to British lawmakers that it found two cases of child labor in its supply chain each year in 2023 and 2024 after the government questioned its labor conditions and supply chain practices. Shein has also faced U.S. government scrutiny in recent years over its business practices. Shein paid US$700,000 (HK$5.46 million) last year to settle a lawsuit brought by four California counties over shipping delays. Texas Attorney General Ken Paxton said in December that he was investigating Shein's supply chain and manufacturing practices. Shein, which was able to attract a nearly US$100 billion valuation in a 2022 fundraising round amid excitement about its lean business operating model, revealed on Sunday it had swung to a quarterly loss, partly due to slowing sales after the U.S. removed the so-called de minimis tariff exemption on small packages. Reuters SHEIN Hong Kong IPO U.S. Federal Trade Commission 𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓ Top News Read More HSI increases to above 25,600 points at midday FINANCE 58 mins ago Hong Kong private home prices rose 13th consecutive month in June to 12.7 percent PROPERTY 1 hour ago Hang Seng Index shines on Wednesday’s market open FINANCE 2 hours ago From whirlwind romance to court battle: the rise and fall of ‘Mr Ho’ SOCIAL BUZZ 18 hours ago DeepSeek founder Liang Wenfeng scores 820 mln yuan profit from Changxin’s surge INNOVATION 19 hours ago HSI edges higher to 25,310 points at market close, Laopu Gold plummets 23pc FINANCE 20 hours ago Chinese robotic maker DexForce Technology plans Hong Kong IPO, Bloomberg reports FINANCE 20 hours ago Hang Seng Index slips 28 points by midday, mainland markets tumble FINANCE 28-07-2026 12:10 HKT Moonshot AI releases full model weights of its Kimi K3, world’s largest open-weight AI model INNOVATION 28-07-2026 12:04 HKT Zhongji Innolight sets its offer price at $980, raising $53.4 bln INNOVATION 28-07-2026 11:23 HKT Nicholas Tse sheds tears at concert as family bids farewell to Patrick Tse GOSSIP 17 hours ago 10 mainland women arrested in Tsuen Wan anti-vice operation NEWS 28-07-2026 04:04 HKT Mainland man stabbed in neck at Mong Kok building, 3 Thai women taken for questioning NEWS 7 hours ago Contact Us About Us Terms of Use Privacy Policy Statement Copyright Policy & License Ethics Statement | Subscriptions Print Advertising Digital Advertising Street Points Copyright © 2026 The Standard - A division of Sing Tao News Corporation Limited. All rights reserved.