Shein agrees to pay $100 million to settle US FTC probe over delivery delays
Fast-fashion giant Shein has agreed to pay $100 million to settle a US Federal Trade Commission investigation into delivery delays and other customer complaints, Reuters reported. The sum equals 44% of its second-quarter profit.
Shein has agreed to pay $100 million to settle an investigation by the US Federal Trade Commission over delivery delays and other customer complaints, a source with direct knowledge told Reuters on Friday, 23 October.
A heavy bill
The settlement equals 44% of Shein’s second-quarter profit, according to Reuters. Shein, founded in China and headquartered in Singapore, said it had “reached a constructive outcome with the FTC” and would share more information 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.
Growth under pressure
Shein shares have fallen 22% from their 1 September listing price as EU fees on e-commerce parcels hit its European business, and Jefferies analysts say its app downloads across ten markets were down 42% in September from a year earlier. The company is still under European Commission investigation over illegal products on its marketplace, Reuters noted.
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