Fast-fashion retailer Shein has agreed to pay $100m to resolve a US Federal Trade Commission (FTC) inquiry into delayed shipments and customer disputes, reported Reuters.
The $100m agreement accounts for roughly 44% of the retailer’s second-quarter profit.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Shein had previously notified investors in July documentation for its scheduled Hong Kong initial public offering (IPO) that the US inquiry could result in substantial monetary penalties.
Records from the regulator show that consumers submitted more than 12,000 complaints concerning over $11m in transactions between January 2020 and June 2026.
Filings made to both the watchdog and the Better Business Bureau detailed consignments marked as delivered that never arrived, with customer support teams failing to address the issues.
In addition to retailing its own clothing lines, the platform operates an open marketplace featuring home goods, toys, and appliances from external vendors.
Addressing the resolution, Shein informed the news agency that it had “reached a constructive outcome with the FTC”, stating that further details would be released in due course.
The financial penalty coincides with wider trading headwinds across the US and Europe.
On 1 July 2026, the EU introduced a provisional €3 ($3.36) import duty on parcels valued at up to €150 sent from non-EU nations via online platforms.
An added €2 handling fee will apply from 1 November, creating a total €5 charge for each individual customs code.
After using low-priced goods such as $5 dresses and $10 jeans to gain market presence, Shein was compelled to raise prices because customs duty exemptions were ended in Europe and the US.
Chief executive officer Sky Xu stated last month that higher-priced clothing collections would be launched to protect profit margins.
The company also remains under formal investigation by the European Commission regarding third parties selling illegal merchandise on its marketplace platform.
This follows a €150m sanction imposed by France’s data protection regulator last year over breaches concerning internet tracking cookies.
