The U.S. Federal Trade Commission confirmed that fast-fashion giant Shein is under investigation over potential consumer protection issues, Reuters reported Tuesday.
The probe could result in a settlement or other action requiring significant payments that may materially affect its financial position and operating results, Shein said in a post-hearing information pack published Sunday on the Hong Kong bourse.
The disclosure comes as the retailer pivots its planned initial public offering to Hong Kong after regulatory hurdles complicated proposed listings in New York and London, including disagreements over supply-chain risk disclosures related to alleged Uyghur forced labor.
Shein did not immediately respond to' request for comment.
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