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Shein Agrees to Pay $700,000 to Settle California Shipping Lawsuit

California regulators won a court order forcing Shein to honor state shipping rules with truthful delivery estimates, customer notifications, refunds

Several Bay Area and other California prosecutors settled a lawsuit with the fast-fashion company Shein after claiming the company was illegally causing shipping delays. 
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Overview

  • Shein will pay $700,000 in civil penalties and investigative costs under a July 9 settlement with Napa, San Francisco, Sonoma and Los Angeles county district attorneys.
  • The agreement includes a permanent injunction barring the fast-fashion retailer from making false or misleading statements about delivery times.
  • Under California law companies must ship online orders within 30 days or provide a refund, replacement or written notice of delays, requirements Shein had failed to meet.
  • The lawsuit targeted three Delaware-based entities tied to Shein’s U.S. operations for unfair competition and false advertising related to shipping claims.
  • Shein said it cooperated with investigators, did not admit liability and has revised its shipping and customer-service practices to comply with state requirements.