Shein has disclosed that its U.S. operations are under investigation by the U.S. Federal Trade Commission, warning that the probe could result in significant monetary payments and materially affect its financial condition and results. The fast-fashion e-commerce company revealed the inquiry in documents filed with the Hong Kong stock exchange in connection with its planned Hong Kong initial public offering, published on Sunday. An FTC spokesperson confirmed on Tuesday that the agency is conducting a consumer protection investigation. Shein did not specify the focus of the probe. The disclosure comes as Shein pursues a Hong Kong listing after abandoning IPO efforts in New York and London.

Prepared by Christopher Adams and reviewed by editorial team.