Shein has agreed to pay $100 million to settle a US Federal Trade Commission investigation into delivery delays and other customer complaints, Reuters reported on 23 October, citing a person with direct knowledge of the matter. The fast-fashion retailer, founded in China and headquartered in Singapore, said it had reached “a constructive outcome with the FTC” and would share more information soon. The FTC declined to comment.
The terms have not been published, and the agency has not confirmed the settlement.
What the complaints say
According to FTC records reviewed by Reuters, consumers filed more than 12,000 complaints about Shein covering over $11 million of purchases between January 2020 and June 2026. Some said packages marked as delivered never arrived and that customer service did not resolve the problem. Reuters said it could not independently verify the complaints.
The reported payment equals about 44% of Shein’s second-quarter profit. Earlier FTC cases over delivery promises were much smaller: Fashion Nova paid $9.3 million in 2020.
From IPO warning to payment
Shein first disclosed the investigation in late July in a filing with the Hong Kong Stock Exchange, without giving details. At the time it warned that a settlement or other outcome could require significant payments. The same filing said the 2025 end of the US de minimis exemption had hurt its US sales and raised fulfilment costs, and that it had passed most of the extra cost on to American shoppers.
Shein listed in Hong Kong on 1 September; Reuters reports its shares are down about 22% from the listing price. The company is also under investigation by the European Commission over illegal products on its marketplace.
For cross-border retailers, the delivery promise is now as closely policed as the price tag.
What to watch
- Publication of the settlement terms by the FTC or Shein.
- Any conduct requirements on shipping times, refunds or customer service.
- Progress of the European Commission’s Digital Services Act case.
