Shein says the FTC is investigating its U.S. operations The disclosure came as part of Shein's application to list its shares publicly on the Hong Kong stock exchange.
Shein says the FTC is investigating its U.S. operations
July 29, 20266:57 PM ET
Chinese-founded Shein, the massive fast-fashion online retailer, says the Federal Trade Commission (FTC) is investigating its U.S. operations. The disclosure came as part of Shein's application to list its shares publicly on the Hong Kong stock exchange.
Over the years, Shein has faced numerous inquiries in the U.S. and in Europe, often focused on its supply chain and workplace conditions. Last year, Shein told British lawmakers, for example, that it had found two cases of child labor at its factories.
At the time, Shein was aiming to list its shares on the London Stock Exchange. But their bid was unsuccessful. Shein also tried and failed to launch an IPO in New York.
The FTC confirmed the probe to NPR, but its focus and timing are unclear. Shein says it's cooperating with the FTC's investigation and says the outcome could "have a material adverse effect" on its finances.
