Shein discloses FTC investigation into US business ahead of Hong Kong IPO

Published Jul 28, 03:44 PM UTC

Fast fashion giant Shein disclosed in documents for its upcoming Hong Kong IPO that the US Federal Trade Commission (FTC) is investigating its American business. The nature of the probe remains unclear, but the FTC has previously targeted companies for hidden fees, dark patterns, and privacy issues. Shein, known for countdown timers and gamified discounts, stated it is cooperating with the FTC but warned the outcome could require significant monetary payments and materially affect its financial condition. Neither Shein nor the FTC commented further. The company, which faced political pushback in the US and shifted its listing plans from New York to London and finally Hong Kong, recently received approval for its Hong Kong IPO, though a trading date has not been set.