Global fast fashion retailer Shein has agreed to pay $700,000 to Los Angeles and three other California counties for violating California law that requires companies to ship products to consumers within 30 days of purchase, the Los Angeles County District Attorney’s Office said Thursday.
LA County had joined Napa, San Francisco and Sonoma counties in suing the e-commerce company, alleging that it engaged in “unlawful practice” by taking more than a month to ship orders and failing to offer a refund or a notice for delayed shipments.
California law requires online retailers to ensure that consumers receive purchased products within 30 days of making payment. If the 30-day deadline cannot be met, companies are supposed to either offer a refund, send a replacement or provide a written notice about the delay.
Even though Shein’s headquarters are located in Singapore with many operations being conducted in China, the retailer must follow California law to operate in the state, according to District Attorney Nathan Hochman.
“No company, no matter how large, is above the law, and we will continue to fight for consumers in Los Angeles County,” Hochman said. “For companies operating throughout California, know this: district attorneys across the state will come together to hold you accountable.”
Shein’s $700,000 settlement payment will be divided among the four district attorney’s offices after subtracting $100,000 in investigative costs, the DA’s office said.
With the settlement, Shein also agreed to be prohibited from making untrue or misleading statements about shipping times and must comply with California’s laws regarding shipping delays.
In response, Shein told NBC Los Angeles that it “fully cooperated” with the investigation but did not admit any liability.
“(We) have taken steps to ensure our shipping and customer practices and communications comply with applicable law, including enhancing our internal processes to provide clearer, more complete information to customers regarding delivery timelines,” the company said in a statement.
Shein’s estimated global revenue for 2024 was around $50 billion, with the United States being the largest market for the company.