Shein to pay $700K in Napa, SF settlement over 'unlawful' shipping delays

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NAPA COUNTY, Calif. - A popular online retailer was ordered to pay $700,000 as part of a settlement reached with Napa, San Francisco and Los Angeles counties over "unlawful" shipping delays. 

The settlement, announced Wednesday by California prosecutors, was over allegations that fast-fashion company Shein did not properly notify customers or offer refunds when their orders were delayed.

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In California, online orders are required to ship within 30 days, unless an earlier or later date is promised by the retailer.

If a company is unable to meet that requirement, they are required to notify customers of the length of the shipping delay and offer a refund.

Settlement details

Dig deeper:

"The complaint alleges that Shein repeatedly failed to ship products within the required timeframes, provide the required delay notices, or offer refunds to its customers," the Napa County District Attorney's Office said in a statement Wednesday.

The case was filed in Napa County, in partnership with San Francisco and Los Angeles counties.

As part of the settlement, the Singapore-based company is prohibited from making "untrue or misleading" statements about shipping or delivery dates, and must adhere to California's shipping delay laws.

"California consumers deserve to have the products they pay for delivered in a timely manner and Shein repeatedly violated that trust by failing to offer refunds when they couldn’t deliver on time," Napa County DA Allison Haley said. 

Shein, which was founded in China, is known for its low-cost and trendy fast-fashion.

In a statement, a Shein spokesperson said the company cooperated with the investigation and has taken steps to ensure shipping and customer practices comply with the law moving forward. 

"We fully cooperated with the investigation throughout and while not admitting any liability, 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 spokesperson said.

The company reiterated the importance of customer service. 

"We are fully committed to transparency, consumer satisfaction, and continually improving our operations to better serve our customers in California and around the world," the company said.