Shein controversies

Cfius opens national security review of Shein's Everlane acquisition

Investigation

The Committee on Foreign Investment in the United States (Cfius), led by the US Treasury Department, has opened a national security review of Shein's acquisition of US apparel retailer Everlane, according to people familiar with the matter cited by Bloomberg on Monday, August 24. The review focuses on potential national security issues, including Everlane's handling of Americans' personal data. Shein said it is committed to complying with all applicable laws and regulations in the markets where it operates.

Shein reaches US$100 million settlement with the FTC

Settlement

Shein agreed to a US$100 million settlement with the U.S. Federal Trade Commission in connection with an investigation. The available information does not specify the subject of the investigation or any findings reached by the agency. The settlement figure was reported at US$100 million. No further details on the terms, the conduct at issue, or the outcome of the investigation were provided in the source material.

Backlash over influencer facility visit

An influencer trip designed to showcase Shein facilities in China was criticized online as promotional and inadequate in addressing allegations about working conditions.

Shein responds to backlash over swastika-shaped necklace

Company response

Shein apologized after facing backlash for selling a necklace that it described as a Buddhist symbol, stating that the item was hurtful and offensive to many customers. The company said it had removed the item and was making internal changes to prevent a recurrence.

Shein apologized after backlash over selling a necklace it described as a Buddhist symbol, saying the item was hurtful and offensive to many customers. Shein said it had removed the item and was making internal changes to prevent a recurrence.

Stated objective. Prevent a similar mistake from happening again.

SHEIN apologizes for swastika necklaces and removes the product

Company response

In July 2020, the clothing retailer SHEIN apologized for selling gold necklaces bearing a Buddhist swastika symbol. The company stated that it understood the symbols could be confused with other meanings and that it had removed the product from its website. The apology and removal followed criticism of the item's listing. SHEIN did not provide further details in the statement as reported.

SHEIN faces backlash over prayer mats listed as decorative rugs

Public backlash

SHEIN faced public criticism after listing Muslim prayer mats as decorative rugs. The company said it made a serious mistake, apologized, removed the products from its website, and asked its vendor to stop selling them to others.

Shein apologizes and removes prayer mats after backlash

Company response

After criticism for advertising Islamic prayer mats as home decor and labeling them “frilled Greek carpets,” Shein apologized and removed the items from its site.

Labor and human-rights allegations

Shein has faced reports and criticism concerning alleged sweatshop conditions, child labor, forced labor risks, and broader labor-rights issues in its supplier network.

Intellectual-property and design-copying disputes

The company has been accused by designers, brands, and competitors of copying designs, trademarks, product images, and online listings, leading to lawsuits and public criticism.

Product-safety and regulatory concerns

Shein has faced product-safety scrutiny and criticism related to compliance, labeling, and the sale of goods across multiple jurisdictions.

Customs and tax-treatment controversy

Shein's cross-border parcel model has been discussed in connection with the United States de minimis exemption and allegations or concerns about tax and customs advantages.