Shein Discloses FTC Investigation Into Fast-Fashion Retailer's U.S. Operations

By Kelly Cloonan

The Federal Trade Commission is investigating Shein Group's U.S. business operations, according to the Singapore-based fast-fashion retailer.

Shein, which was founded in China, disclosed the investigation in a filing related to its planned initial public offering in Hong Kong. The company didn't disclose what the FTC is investigating, or when the probe began.

An FTC spokesperson confirmed the investigation but declined to provide further comment. Shein didn't immediately respond to a request for comment.

In the filing, Shein said it is cooperating with the FTC's investigation.

The company said there is a possibility it could reach a settlement with the FTC that could require it to make "significant monetary payments that could have a material adverse effect on our financial condition."

Shein added that it can't predict the outcome of the investigation, or the timing of the outcome. "We cannot rule out that such outcome could occur in the near term," the company said.

The disclosure was included in filings with the Hong Kong stock exchange as the retailer gears up to go public after securing China's approval for a listing earlier this year. The company had previously targeted an IPO in the U.S., but its plan fell apart amid U.S. scrutiny of its supply chain and labor practices in China. Shein had also eyed a listing in London.

Shein has also been the subject of an investigation by the EU over concerns about illegal products sold online and potential risks to users from the platform's design.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

July 28, 2026 14:06 ET (18:06 GMT)