Key facts
- Shein agreed to pay $100 million to settle a US FTC probe.
- The settlement is equivalent to 44% of Shein's second-quarter profit.
- The FTC probe concerned delivery delays and other customer complaints.
Chinese fast-fashion giant 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. The settlement, equivalent to 44% of Shein's second-quarter profit, is the latest hit for the online retailer facing regulatory and tax crackdowns in Europe and the US. Shein stated it had "reached a constructive outcome with the FTC." The company had warned in July filings for its Hong Kong IPO that the US probe could lead to significant fines. Jefferies analysts said Shein's app downloads across ten markets were down 42% in September versus a year ago. Shein is also under investigation by the European Commission over illegal products on its marketplace and was fined €150 million ($168 million) by France's data protection authority last year.