Shein to Pay $100 Million to Settle U.S. FTC Probe, Source Says

Delivery complaints add to pressure on online fashion retailer

Shein has agreed to pay $100 million to settle an investigation by the U.S. Federal Trade Commission into delivery delays and other customer complaints, according to a source with direct knowledge of the matter. The proposed settlement would be the latest regulatory cost for the online fashion retailer as authorities in the United States and Europe scrutinize its business.

Shein said it had reached a constructive outcome with the FTC and would provide more information. An FTC spokesperson declined to comment. The company had warned in filings for its Hong Kong initial public offering that the investigation could result in significant fines.

FTC records reviewed by Reuters showed more than 12,000 consumer complaints concerning purchases worth more than $11 million between January 2020 and June 2026. Some customers said packages marked as delivered never arrived, while others said customer service failed to resolve their cases. Reuters said it could not independently verify the substance of the complaints or determine whether they were resolved.

Shein operates both as a seller of its own clothing and as a marketplace for third-party merchants. The company is also facing higher costs in Europe, where a €3 fee on low-value e-commerce parcels has been followed by an additional €2 handling fee scheduled to begin on November 1. Shein has raised prices and said it plans to develop more higher-priced brands as it seeks to improve profitability.

Sources

https://www.reuters.com/business/retail-consumer/fast-fashion-group-shein-agrees-pay-100-million-settle-us-ftc-probe-2026-10-23/