Shein Agrees to $100 Million U.S. Settlement Over Shipping Delays and Customer Complaints

Key Facts

Shein agreed to pay $100 million to settle a U.S. Federal Trade Commission investigation into delivery delays and customer complaints, Reuters reported on October 23, citing a source with direct knowledge of the matter. The company said it had reached a “constructive outcome” with the commission and would share additional information soon, but did not confirm the settlement amount. A commission spokesperson declined to comment on the reported settlement. The report puts a large financial settlement at the center of the investigation, while the agreement’s details remain undisclosed. The news also comes against the backdrop of consumer complaints registered with the commission over more than six years.

Records reviewed by Reuters showed more than 12,000 complaints about Shein, linked to purchases worth more than $11 million between January 2020 and June 2026. Some customers said the company showed their packages as delivered even though they had not received them, and that customer service did not resolve the issue. Reuters could not independently verify the substance of the complaints or whether they were ultimately addressed. These remain complaints recorded in the files, rather than independent findings establishing the validity of each claim. The records cover complaints from January 2020 through June 2026.

Reuters estimated that the reported settlement amount equals 44% of Shein’s second-quarter profit. In September, the company said adjusted net income was $228 million in the three months ended June 30, down 66.6% year over year, while revenue rose 0.9% to $11.08 billion. The figures show a contrast between limited revenue growth and a decline in adjusted income in the same quarter. Shein also said it chose to absorb higher oil and shipping costs rather than pass them on to customers. It added that tariff pressures and volatility in logistics costs were expected to persist in the second half of 2026, while it remained cautiously optimistic about adjusted net income.

Shein had warned in July, in a disclosure related to its Hong Kong listing, that the outcome of the commission’s investigation could require substantial payments that could materially adversely affect its financial position and results. The company said in the disclosure that it was cooperating with the investigation but did not then reveal why it had been opened. Those warnings provide context for the amount reported by Reuters, without establishing that the settlement’s final financial impact has been determined. The commission’s rule requires online sellers to have a reasonable basis for shipping an order by the stated date. If no date is specified, the rule sets a default period of 30 days and requires sellers unable to ship on time to seek the customer’s consent to a delay or refund the amount for the unshipped goods.

The U.S. investigation is one of several separate regulatory matters the company faces in other markets. Shein remains subject, Reuters reported, to a European Commission investigation into illegal products on its platform. In the year before the October 23 report, France’s data protection authority fined the company 150 million euros for improper use of cookies. These European matters are not linked to the U.S. investigation, but show the range of regulatory issues surrounding the company. In the United States, the commission fined Fashion Nova $9.3 million in 2020 for failing to meet shipping promises and issuing gift cards instead of refunds. It also fined Crocs’ Hey Dude $1.95 million in 2023 for failing to notify customers about shipping delays and suppressing negative reviews.

In the market, Reuters reported that Shein shares had fallen 22% from their Hong Kong listing price as of October 23, while app downloads declined 42% year over year in September across ten markets, according to Jefferies analysts. The shares had fallen 12.7% to 30.8 Hong Kong dollars in early trading on September 29, their lowest level since listing, after the company announced its second-quarter results. In those results, adjusted net income fell while revenue growth was just 0.9%, according to figures reported by Reuters. The company said it expected tariff pressures and volatility in logistics costs to continue in the second half of 2026. The sources gave no date for the announcement of the settlement terms or further details Shein said it would share soon.