Shein says it's under investigation by the Federal Trade Commission as it prepares for Hong Kong IPO

SHEIN disclosed a Federal Trade Commission investigation into its U.S. business in filings tied to its planned Hong Kong initial public offering. The Chinese-founded fast fashion company did not specify the nature or scope of the FTC probe in the IPO documents.

The disclosure comes as SHEIN prepares to list shares in Hong Kong after abandoning efforts to pursue a U.S. listing. The regulatory scrutiny adds a layer of uncertainty to the company's public-market debut, though the filing does not indicate whether the investigation has delayed the IPO timeline or affected the offering's valuation.

FTC probes of consumer-facing companies can range from data privacy and advertising practices to labor and supply chain compliance. SHEIN has faced past criticism over product safety, environmental practices, and intellectual property issues, though the company has not confirmed whether the current investigation relates to any of these areas.

The IPO filing marks one of the first times SHEIN has publicly acknowledged U.S. regulatory exposure as it seeks to tap public markets.