According to Just Style, Shein has agreed to pay $100 million to resolve a US Federal Trade Commission (FTC) inquiry into delayed shipments and customer disputes, Reuters reported. The settlement follows the fast-fashion platform’s July disclosure to investors that the US probe could carry substantial monetary penalties as it prepared documentation for a scheduled Hong Kong initial public offering.
Complaint record details scale of disputes
Records held by the regulator show that consumers filed more than 12,000 complaints tied to over $11 million in transactions between January 2020 and June 2026, according to the report.
Filings submitted to both the watchdog and the Better Business Bureau described consignments marked as delivered that never reached buyers, with customer support teams failing to resolve the problems. The complaint volume covers a period of roughly six and a half years.
The platform sells its own clothing lines and also runs an open marketplace carrying home goods, toys, and appliances supplied by external vendors — a structure that widens the range of transactions falling under customer-dispute scrutiny.
Company calls outcome constructive
Shein told the news agency that it had settled the matter and would disclose further details at a later stage.
“We have reached a constructive outcome with the FTC.” — Shein
The $100 million payment resolves the US inquiry but lands alongside mounting cost pressure on both sides of the Atlantic, where Shein built its market position on low-priced goods such as $5 dresses and $10 jeans.
EU duty and fee stack raises parcel costs
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 countries via online platforms, the source states.
A further €2 handling fee takes effect from 1 November, bringing the total charge to €5 for each individual customs code. The combined levy directly affects the low-value parcel model that underpins Shein’s cross-border volume into Europe.
With customs duty exemptions ended in both Europe and the US, the company has been forced to lift prices. Chief executive officer Sky Xu said last month that higher-priced clothing collections would be launched to protect profit margins.
Regulatory exposure extends beyond the US
Shein remains under formal investigation by the European Commission over third parties selling illegal merchandise on its marketplace platform, according to the report.
The Brussels probe adds to a €150 million sanction imposed by France’s data protection regulator last year over breaches concerning internet tracking cookies. Together with the US settlement, the actions leave the platform facing compliance costs in multiple jurisdictions at once.
The FTC resolution and the EU duty schedule both bear on the investor documentation Shein circulated in July, when it flagged the US inquiry as a potential source of substantial penalties ahead of its Hong Kong listing.
Source: Just Style
Compiled from international media by the SCI.AI editorial team.
