Shein agrees to $100m settlement over US customer complaints, Reuters reports

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 Friday, citing a person with direct knowledge of the matter. The FTC declined to comment, and the report did not establish whether the agreement had been signed or finalised.

The online retailer told Reuters it had reached a “constructive outcome” with the FTC and would share more information soon. The reported sum is equivalent to 44% of Shein’s second-quarter profit, Reuters said.

The investigation comes as Shein faces regulatory scrutiny in Europe as well as the US. The European Commission is investigating the company over alleged illegal products on its marketplace, Reuters reported. Shein’s European revenue fell 13.9% year on year in the second quarter, before new EU duties on small parcels took effect; the company’s global revenue rose slightly.