Shein has agreed to pay US$100 million to settle a US investigation into delivery delays and other customer complaints.
On Oct 23, a person familiar with the matter told Reuters that the Singapore-headquartered retailer had agreed to the payment. The inquiry was led by the US Federal Trade Commission.
The payment is equivalent to 44% of Shein's second-quarter profit. Its value is S$127.8 million.
Shein said it had "reached a constructive outcome with the FTC" and that it would provide additional information soon.
An FTC spokesperson declined to comment. The agency has therefore not confirmed the settlement, and its exact terms beyond the payment figure are not stated.
Significant fines could result from the US investigation, Shein said in filings for its Hong Kong initial public offering submitted in July.
The settlement adds to pressure on growth
The case involves a company founded in China but headquartered in Singapore. Regulatory and tax action against Shein in Europe and the United States has hampered its growth.
Its shares have fallen 22% from their Sept 1 listing price. The decline came as investors assessed the effect of European Union fees on e-commerce packages on the company's business there.
Jefferies analysts said app downloads for Shein in 10 markets fell 42% in September from a year earlier. The settlement arrives while several market indicators are weakening, rather than during a period of uninterrupted expansion.
The company is still under investigation by the European Commission over illegal products offered on its marketplace. France's data protection authority also fined Shein €150 million (S$214.8 million) in 2025 for improper cookie use.
Those matters are separate from the US delivery investigation. The sources do not state the outcome of the European Commission case.
Earlier US delivery cases set a comparison
Earlier US delivery penalties
Fashion Nova
2020 US action
US$9.3 million
- Shipping promises
- Refunds replaced with gift cards
Hey Dude
2023 US action
US$1.95 million
- Shipping-delay notices
- Negative reviews
Fashion Nova, a US company, was fined US$9.3 million in 2020 after failing to meet shipping promises and giving customers gift cards instead of refunds.
A US$1.95 million fine was imposed on Crocs-owned Hey Dude in 2023 after it failed to tell customers about shipping delays and suppressed negative reviews.
The FTC has taken action against online retailers over delivery practices before, so Shein's case is not the first of its kind. The proposed payment is larger than the two earlier penalties listed here, although the pack does not state whether the cases have identical legal terms.
The next steps remain unsettled
- JulyShein warning
Hong Kong listing filings said the US probe could lead to significant fines.
- 2020Fashion Nova fine
The retailer was fined US$9.3 million over shipping promises and refunds.
- 2023Hey Dude fine
The company was fined US$1.95 million over delay notices and negative reviews.
- 2025French data fine
France's data protection authority fined Shein €150 million (S$214.8 million) over cookies.
No date has been given for the additional information Shein said would be shared soon, and the FTC has not confirmed or commented on whether or when it will address the settlement.
The outcome of the European Commission's investigation into illegal products on Shein's marketplace is also unknown.
