Chinese fast-fashion giant Shein has agreed to pay $100 million to settle a US Federal Trade Commission investigation over delivery delays and other customer complaints, a source with direct knowledge told Reuters.

The reports carried by Myrtle Beach Sun News and Free Malaysia Today say the settlement equals 44% of Shein's second-quarter profit, and that Shein said it had "reached a constructive outcome with the FTC." An FTC spokesperson declined to comment on the deal.

The settlement is striking for its size relative to Shein's earnings: reports note it represents 44% of the retailer's second-quarter profit, a heavy hit for a company once known for $5 dresses and $10 jeans.

It also lands amid a broader regulatory squeeze — Shein's shares have already dropped 22% from their September 1 listing price as investors digested the EU's €3 fees on low-value e-commerce packages, with an additional €2 handling fee taking the total to €5 per customs code from November 1.

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

The reports say at least some relate to shipping, with customers telling the FTC and Better Business Bureau they never received packages Shein had marked as delivered and that customer service did not resolve the issue.

Reuters could not independently verify the complaints or whether they were resolved.

The Opinions Editor Lola Ferguson argues in The Cougar Chronicle that the fast fashion model — pumping out low-quality clothes to meet trends — carries steep human and environmental costs.

She cites the US Department of Labor on forced and child labor in textile production across Asia and central Africa, and an NIH article saying roughly 85% of clothing Americans consume, nearly 3.8 billion pounds annually, is sent to landfills as solid waste.

The reports place Shein's settlement in a lineage of FTC delivery actions: Fashion Nova was fined $9.3 million in 2020 for failing to meet shipping promises, and Crocs-owned Hey Dude paid $1.95 million in 2023 over undisclosed delays and suppressed reviews.

Shein also remains under investigation by the European Commission over illegal products on its marketplace and was fined €150 million by France's data protection authority over improper cookie use last year.

Shein had warned in July IPO filings that the US probe could bring significant fines, and CEO Sky Xu said last month the company would develop more higher-priced brands to boost profitability as customs loopholes close on both sides of the Atlantic.

For shoppers weighing alternatives, The Cougar Chronicle points to Good On You, a website that researches brands' environmental and labor practices, alongside thrifting, upcycling, and clothing swaps as affordable ways off the fast-fashion treadmill.