The Shein FTC settlement will cost the fast-fashion retailer $100 million to resolve a US investigation into delivery delays and other customer complaints, a person with direct knowledge of the matter said on October 23, 2026.

Key Takeaways

  • Shein said it had reached a constructive outcome with the FTC but did not disclose the settlement amount in its statement.
  • FTC records showed more than 12,000 complaints involving over $11 million in purchases from January 2020 through June 2026.
  • An additional EU handling fee is set to take effect on November 1, 2026, bringing the total fee to €5 per separate customs code.

Shein FTC settlement and customer complaints

Shein said additional information about its outcome with the Federal Trade Commission would be shared soon. An FTC spokesperson declined to comment. The company had warned in July filings for its Hong Kong initial public offering that the investigation could lead to significant fines.

Some customer complaints concerned packages that Shein marked as delivered but that shoppers said they never received. Customers also reported that Shein’s customer service did not resolve the issue.

Founded in China and headquartered in Singapore, Shein sells its own clothing and operates a marketplace where third-party sellers offer products including toys, appliances and home decor.

European fees add to pressure

The US settlement comes as Shein faces regulatory and tax pressure in Europe and the United States. The EU has imposed a €3 fee on low-value e-commerce packages; an additional €2 handling fee is due from November 1, 2026, bringing the total to €5 per separate customs code.

Shein shares have fallen 22% from their September 1 listing price. The company has raised prices as the United States and Europe closed customs duty loopholes, while CEO Sky Xu said in September that Shein would develop more higher-priced brands to boost profitability.

The European Commission is also investigating illegal products on Shein’s marketplace. In 2025, France’s data protection authority fined the company €150 million over improper use of cookies.

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