Shein’s business in the US is being investigated by the Federal Trade Commission, the cross-border e-commerce company said in a regulatory filing ahead of its planned Hong Kong IPO.

The filing, which does not specify what the FTC is investigating, appears to be the first time the probe has been disclosed.

Shein, which was founded in China but is headquartered in Singapore, said it is “actively cooperating” with the federal agency.

It said the outcome of the probe is unknown and that it could be required to “make significant monetary payments that could have a material adverse effect on our financial condition and results of operations”.

The FTC investigates deceptive or unfair business practices, including “dark patterns”, design tricks that, according to a 2022 report, can include countdown timers.

Shein uses countdown timers, gamified discounts and flash sales, among other sales tactics.

Shein also revealed in the filing that its net revenue fell to a loss of $99 million (£74.4m) in the first quarter of this year, down from a $395m profit a year earlier, after the US and the EU imposed fees for low-cost parcels.

It said revenue grew 8 percent in 2025 to reach $41.8bn for the year, before moving into a loss in the first three months of 2026 due to the removal of de minimis exemptions for low-cost parcels in the US and the EU.

Shein originally tried to list in New York, but its bid was blocked by US lawmakers in 2023.

A reported effort to hold an IPO on the London Stock Exchange was approved by the Financial Conduct Authority, but this effort was blocked by Chinese regulators, under 2023 laws that allow the China Securities Regulatory Commission (CSRC) to vet applications for offshore listings of Chinese firms.