Shein: Under FTC consumer protection probe

Published Jul 29, 10:14 PM UTC

Shein, the ultra-fast fashion company, disclosed in its draft prospectus for a Hong Kong IPO that it is under investigation by the U.S. Federal Trade Commission (FTC). The FTC confirmed a consumer protection probe into the company. Shein stated it is cooperating but warned the outcome could require significant monetary payments and have a material adverse effect on its financial condition and operations. This investigation adds to Shein's challenges in going public, following failed attempts in the U.S. in 2023 and London in 2024. Additionally, the European Commission launched an investigation in February 2026 into Shein for alleged violations of the Digital Services Act, including addictive design and sale of illegal products.