Shein is the target of a sustained wave of lawsuits and regulatory actions across the United States and Europe, covering shipping practices, product safety, data privacy, copyright infringement, deceptive pricing, unsolicited marketing, and trade compliance. The actions in this roundup of Shein lawsuits come from state attorneys general, federal courts, private plaintiffs, and European regulators, and they have produced settlements, fines, pending claims, and significant pressure on the company’s planned public offering.
U.S. State Attorney General Actions
California Shipping Delay Settlement
On July 9, 2025, Shein settled a consumer protection lawsuit brought by the district attorneys of Napa, Los Angeles, San Francisco, and Sonoma counties. The complaint, filed in Napa County Superior Court, alleged that Shein routinely took more than 30 days to ship online orders, failed to notify customers of the delays, and failed to offer refunds when shipments were late.1Sonoma County District Attorney. Settlement of Consumer Protection Lawsuit Against Shein for Unlawful Shipping Delays
Shein agreed to pay $700,000: $600,000 in civil penalties split equally among the four counties and $100,000 in investigative costs. The settlement also prohibits the company from making misleading statements about shipping and delivery times and requires compliance with California’s shipping delay laws going forward.2Los Angeles County District Attorney. Fast Fashion Company Shein Settles Consumer Protection Lawsuit for $700,000
Texas Lawsuit Over Toxic Products and Data Exposure
On February 20, 2026, Texas Attorney General Ken Paxton sued Shein US Services LLC and its affiliates under the Texas Deceptive Trade Practices Act, pressing two separate theories.3Texas Attorney General. Attorney General Ken Paxton Files Lawsuit Suing Global Fast Fashion Giant Shein
The first theory concerns product safety. The complaint describes Shein products as “silent carriers of poison,” alleging that items marketed to children, newborns, and pregnant women contain toxic chemicals and heavy metals above safety standards. It draws on a December 2025 Greenpeace Germany study that tested 56 Shein products and found 18 contained hazardous chemicals above EU legal limits, including PFAS concentrations up to 3,300 times the EU threshold in some jackets, as well as South Korean regulatory findings of phthalate levels as high as 428 times the legal limit in children’s shoes and accessories.4Yahoo Finance Canada. Shein Clothing Tested at Thousands of Times Chemical Limits5CHEM Trust. Report Finds Hazardous Chemicals in Shein Clothing Above EU Limits
The second theory concerns data privacy. The state alleges that Shein, though headquartered in Singapore, is “tethered to the Chinese Communist Party” and acts as a “data siphon” exposing consumer information to the Chinese government. According to the complaint, Shein’s privacy policy omits the risk that Chinese national intelligence and cybersecurity laws could compel it to disclose user data, and that omission is a material deception. The suit seeks up to $10,000 per DTPA violation, rising to $250,000 per violation when the consumer is 65 or older, plus injunctive relief and attorneys’ fees. A Shein spokesperson said the company “strongly disagree[s] with the allegations” and would “prove our position in court.”3Texas Attorney General. Attorney General Ken Paxton Files Lawsuit Suing Global Fast Fashion Giant Shein
The lawsuit followed Governor Greg Abbott’s January 26, 2026 decision to add Shein to the state’s Prohibited Technologies list, banning the platform from state networks and devices, including university Wi-Fi, based on a Texas Cyber Command threat assessment.6The Daily Texan. Gov. Abbott Bans Shein, Other Websites Affiliated With China
New York Data Breach Settlement
In October 2022, New York Attorney General Letitia James reached a $1.9 million settlement with Zoetop Business Company, the corporate entity behind Shein and Romwe, over its handling of a 2018 data breach. Hackers had stolen personal information and credit card data from 39 million Shein accounts and 7 million Romwe accounts. The investigation found that Zoetop failed to notify 32.5 million affected Shein users that their credentials had been stolen, told consumers there was “no evidence” credit card information had been compromised when the company knew otherwise, and stored some credit card numbers in plain text in system debug logs. Zoetop agreed to implement a comprehensive information security program and submit to annual third-party assessments through 2027.7New York Attorney General. Attorney General James Secures $1.9 Million From E-Commerce Shein and Romwe Owner Zoetop
Copyright and AI-Related Lawsuits
Shein has faced nearly 100 copyright infringement lawsuits in U.S. federal courts, most of which have ended in undisclosed settlements.8Financial Times. Shein Copyright Infringement Lawsuits Two recent cases are worth knowing in detail.
Perry v. Shein and the RICO Ruling
In July 2023, independent designers Krista Perry, Jay Baron, and Larissa Martinez (known as “Blintz”) sued Shein in the Central District of California. Perry alleged Shein sold exact copies of her wall art and blanket patterns; Baron claimed infringement of his 2016 artwork “Trying My Best”; Martinez alleged her 2018 “Orange Daisies” design was copied. The complaint brought four copyright counts, a trademark count, and a count under the Racketeer Influenced and Corrupt Organizations Act.9UNC Journal of Law and Technology. Fast Fashion Creating Even Faster Copies: Examining Shein’s Intellectual Property and Racketeering Suit
Shein moved to dismiss the RICO claim in October 2023, arguing that ordinary copyright infringement couldn’t support a racketeering charge. On November 12, 2024, Judge Mark C. Scarsi denied the motion, ruling that the designers had “viably alleged copyright infringement as a predicate act for their RICO claim.”10Bloomberg Law. Shein Fails to Escape RICO Claims in Designers’ Copyright Suit The case settled on September 9, 2025 on undisclosed terms.11Law360. Krista Perry et al v. Shein Distribution Corporation et al
Giana v. Shein: AI and Mass Copying
On September 12, 2025, a proposed class action titled Giana v. Shein Distribution Corp. was filed in the Central District of California. The complaint alleges Shein uses artificial intelligence, data mining, and algorithms to scan social media for trending designs and then mass-produce counterfeit versions, treating the cost of litigating and settling copyright claims as a “necessary business expense.” The proposed class covers individuals and entities whose U.S. copyrights were used in Shein products.12ClassAction.org. Shein Lawsuit Alleges E-Commerce Giant Uses AI to Steal, Sell Copyrighted Designs Shein moved to dismiss on January 27, 2026, calling the allegations “fanciful and severely misguided.”13Law360. Alan Giana v. Shein Distribution Corp. et al
Consumer Class Actions in U.S. Courts
Unsolicited Marketing Texts
In July 2025, a class action was filed in the Southern District of Indiana alleging that Shein violated the Telephone Consumer Protection Act by sending unsolicited marketing texts to a consumer who had registered with the national Do-Not-Call Registry two months earlier. The plaintiff says they received three marketing texts in June 2025 without consent. The suit also brings claims for invasion of privacy and private nuisance and seeks a jury trial and monetary damages.14Yahoo Finance. Shein Faces Class Action Lawsuit
Fake Discount Pricing
On May 5, 2026, a proposed class action titled Severino et al. v. Shein US Services, LLC et al. was filed in the Central District of California, alleging that Shein systematically displays fabricated “reference prices” on its house-brand products to invent the appearance of discounts. The complaint cites 12 months of third-party price-tracking data from Microsoft Shopping and AliPrice.com showing the items were consistently sold at or near the “sale” price and never reached the advertised original price. One example: a GLOWMODE sports bra listed at a $23.99 reference price with a “20% off” sale price of $19.19, when tracking data showed the item consistently sold at or below $19.19 for at least six months.15ClassAction.org. Shein Lawsuit Accuses Retailer of Using Fake Sales to Drive Purchases The plaintiffs seek restitution, disgorgement of profits, and punitive damages under California’s Unfair Competition Law, False Advertising Law, and Consumers Legal Remedies Act.
European Regulatory Actions
France’s €150 Million Cookie Fine
On September 1, 2025, France’s data protection authority, the CNIL, fined Shein’s Irish subsidiary Infinite Styles Services Co. Limited €150 million for violations of French data protection law involving cookies. The CNIL found that advertising cookies were placed on visitors’ devices the moment they arrived at shein.com, before any opportunity to consent. The consent banners were incomplete, with one version containing only an “Accept” button, and the “Refuse all” button did not actually work: new cookies continued to be placed and existing ones continued to be read after users attempted to opt out.16CNIL. Cookies Placed Without Consent: Shein Fined 150 Million Euros by the CNIL The regulator cited the multiple violations, Shein’s roughly 12 million monthly French visitors, and the fact that similar violations had been sanctioned and publicized since 2020 as justification for the size of the fine.17EDPB. Cookies Placed Without Consent: Shein Fined €150,000,000 by the CNIL
EU Consumer Protection Findings
In May 2025, the EU’s consumer rights enforcement network concluded that Shein had breached EU consumer protection laws through fake discounts not based on actual prior prices, fake countdown timers, misleading sustainability claims, and hidden contact details. Justice Commissioner Michael McGrath said it was “now for Shein to step up, respect the rules and bring its practices fully in line with EU consumer standards.” The company was given one month to respond or face fines based on its EU sales.18BBC. Shein Found in Breach of EU Consumer Protection Laws On June 5, 2025, the European Consumer Organisation (BEUC) filed a separate complaint backed by 25 consumer organizations from 21 countries, alleging that Shein uses “dark patterns” including infinite scrolling, low-stock warnings, and “confirm-shaming” in violation of the EU’s Unfair Commercial Practices Directive.19BEUC. Click, Buy, More
Digital Services Act Investigation
On February 16, 2026, the European Commission opened formal proceedings against Shein under the Digital Services Act. The investigation focuses on Shein’s systems for preventing the sale of illegal products in the EU, allegations of “addictive design,” transparency of its recommender algorithms, and the presence of illegal or age-inappropriate content. Two earlier formal requests for information had been issued in June 2024 and February 2025.20Digital Policy Alert. European Commission Opens Formal Proceedings Against Shein Under the DSA
The End of the De Minimis Exemption
A central piece of Shein’s U.S. business model relied on shipping individual packages directly from Chinese suppliers to U.S. consumers, keeping each shipment under the $800 “de minimis” threshold and avoiding duties. A 2023 House Select Committee on the Chinese Communist Party report found Shein and Temu were likely responsible for more than 30 percent of daily de minimis shipments to the U.S. and nearly half of those originating from China.21House Select Committee on the CCP. Select Committee Releases Interim Findings on Shein, Temu, and Forced Labor
The Trump administration closed the de minimis loophole for Chinese imports on May 2, 2025. A July 30, 2025 executive order then suspended de minimis treatment globally, effective August 29, 2025.22White House. Suspending Duty-Free De Minimis Treatment for All Countries Shein’s U.S. daily active users fell 25 percent in May 2025 compared to March, and the company cut U.S. advertising spending by 70 percent year-over-year.23CNBC. Shein, Temu See U.S. Demand Plunge on De Minimis Trade Loophole Closure By late August 2025, U.S. Customs and Border Protection had collected more than $492 million in additional duties on packages from China and Hong Kong since the exemption ended for that region.24Fortune. De Minimis Exemption and American Purchasing Power
What This Means for Shein’s IPO
The accumulated legal and regulatory pressure has weighed on Shein’s long-running attempt to go public. The company first targeted a New York listing but abandoned it after pushback from U.S. lawmakers over forced labor allegations. It then pivoted to the London Stock Exchange, where the effort stalled because the UK’s Financial Conduct Authority and China’s securities regulator, the CSRC, could not agree on how the prospectus should describe supply chain risks tied to Xinjiang. The FCA approved one version of the prospectus; the CSRC rejected it.25Financial Times. Shein IPO Regulatory Standoff
In the first week of July 2025, Shein confidentially filed a draft prospectus with the Hong Kong Stock Exchange, which analysts described as an attempt to pressure UK regulators into compromising on disclosure language.26CNBC. Shein Files for Hong Kong IPO in Hopes of Salvaging London Listing Shein’s estimated valuation has fallen sharply across the process, from $100 billion in 2022 to $66 billion in 2023, with later reports suggesting pressure to cut the target to roughly $30 billion.27CNBC. Shein’s Embattled IPO Signals Mounting Troubles for Fast Fashion Giant