Shein discloses it's under investigation by the FTC
Fast-fashion retailer Shein has disclosed that it is under investigation by the U.S. Federal Trade Commission. While the specific nature of the probe remains undisclosed, it may involve concerns over consumer protection and 'dark pattern' marketing tactics.
Why it matters
As a major global retailer, Shein's regulatory challenges highlight increasing scrutiny on the business practices of fast-fashion giants and digital marketing ethics.
Shein's U.S. business is under investigation by the Federal Trade Commission, the fast-fashion giant revealed in documents connected to its upcoming Hong Kong initial public offering .
In the filing, the Chinese-founded company didn't say what the FTC is investigating, but the disclosure appears to be the first time the probe was made public.
"We are actively cooperating with the FTC. … Although it is possible that we may reach a settlement with the FTC in connection with the investigation, we currently cannot predict the probable outcome of the investigation and the timing of such outcome, and we cannot rule out that such outcome could occur in the near term," Shein wrote in the document, filed with the entity that operates the Hong Kong Stock Exchange.
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