US FTC Investigates Shein's US Business; Shein First Discloses Probe in Hong Kong IPO Filing

The US Federal Trade Commission (FTC) is investigating the US operations of Chinese fast-fashion company Shein to protect consumer rights. Shein declined to comment on the details of the investigation. The FTC enforces antitrust and consumer protection laws, covering regulations on advertising claims, false marketing, and consumer data privacy. In September 2025, rival Temu, owned by Pinduoduo, was fined $2 million for failing to fully comply with the 2023 Consumer Notification Act. The law, which took effect in 2023, requires online marketplace platforms to verify the true identity information of third-party high-volume merchants to combat counterfeit sales and curb illegal disposal of stolen goods. The FTC also receives complaints from US consumers and law enforcement agencies and publishes data on fraud, scams, and robocalls. Shein has previously been fined in France for allegedly collecting consumer data without consent and offering false discounts, and the company is appealing the fines for data privacy infringement.