China-founded online retailer Shein disclosed a Federal Trade Commission (FTC) investigation that could soon require significant payments as its U.S. sales fell 14.3 percent and it moved toward a Hong Kong stock listing after earlier efforts in New York and London stalled.
The investigation was among a series of legal and regulatory pressures detailed in Shein’s draft Hong Kong listing document, offering a rare look inside the privately held retailer whose low-priced clothing and other goods reach millions of American consumers.
Shein’s U.S. revenue fell from $2.4 billion to $2 billion during the first three months of 2026.
The company said U.S. tariff changes hurt sales during the second half of 2025 and the first quarter of this year….