Chinese fast-fashion giant Shein has agreed to pay USD 100 million to settle an investigation by the US competition and consumer protection authority FTC into delivery delays and customer complaints. Reuters reports this, citing a source with direct knowledge.
The amount corresponds to 44 percent of the company’s profit in the second quarter. The settlement comes as Shein faces pressure from tighter regulations and fees in the US and Europe.
The stock has fallen 22 percent since its listing in Hong Kong on September 1.
Shein is also being investigated by the European Commission over illegal products on its marketplace and was previously fined EUR 150 million in France for improper use of cookies.
