LONDON, UK: Fast-fashion retailer Shein has agreed to a US$100 million settlement with the U.S. Federal Trade Commission over an investigation into delivery delays and other customer complaints, according to a source with direct knowledge of the matter.

The settlement equals 44 percent of Shein's second-quarter profit and adds to the regulatory and tax pressures facing the online retailer in the United States and Europe.

Shein, which was founded in China and is headquartered in Singapore, said in a statement to Reuters that it had "reached a constructive outcome with the FTC", adding that more information would be shared soon.

An FTC spokesperson declined to comment.

Shein had warned in filings for its Hong Kong IPO in July that the U.S. investigation could result in significant fines.

Consumers filed more than 12,000 complaints about Shein involving more than $11 million in purchases between January 2020 and June 2026, according to FTC records reviewed by Reuters.

Some of the complaints concerned shipping. Customers reported to the FTC and Better Business Bureau that packages Shein marked as delivered never arrived and that the company's customer service did not resolve the problem.

We could not independently verify the complaints' substance or whether they were ultimately resolved.

Shein, which sells its own-brand clothing and operates a marketplace for third-party sellers, has also faced mounting regulatory pressure outside the United States.

Its shares have fallen 22 percent from their September 1 listing price as European Union fees on e-commerce packages have weighed on its business in the region.

Jefferies analysts said downloads of Shein's app across 10 markets fell 42 percent in September from a year earlier.

The company also remains under investigation by the European Commission over illegal products on its marketplace. France's data protection authority fined Shein 150 million euros ($168 million) last year for improper cookie use.

The FTC has previously taken action against online retailers over delivery practices. In 2020, the FTC fined Fashion Nova $9.3 million for failing to meet shipping promises and providing gift cards instead of refunds.

Crocs-owned Hey Dude was fined $1.95 million in 2023 for failing to notify customers about shipping delays and suppressing negative reviews.