ESG Enforcement Tracker

The FTC is investigating Shein’s US operations for potential violations of US consumer protection laws. The investigation comes as the company seeks to proceed with a proposed Hong Kong initial public offering.

The company did not disclose the specific conduct under investigation but confirmed that it is cooperating with the FTC.

The FTC confirmed that it is conducting a consumer protection investigation into Shein. The agency is responsible for enforcing US laws concerning unfair, anticompetitive and deceptive business practices.

Shein has warned that the investigation could result in a settlement or other outcome involving significant monetary payments that may materially adversely affect its financial condition and operating results. The company said that it could not predict the outcome or timing of the investigation.

The investigation adds to broader scrutiny of Shein’s business practices and supply chain. The company has previously faced concerns in the US relating to alleged forced labour in its supply chain, alongside other regulatory and litigation risks in multiple jurisdictions.