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Global first fashion retailer Shane has agreed to pay $700,000 to Los Angeles and three other California states.
LA County joins NAPA, San Francisco and Sonoma Counties to sues e-commerce companies and alleges they engaged in “illegal practices” by offering orders refunds or notifications of late shipments over a month.
California law requires online retailers to ensure that consumers receive products purchased within 30 days of payment. If the 30-day deadline is not met, the company is to offer a refund, send an exchange, or provide written notice of delays.
Shein’s headquarters are in Singapore and many of its operations are carried out in China, but retailers must follow California laws to operate in the state.
“No company, no matter how big, is beyond the law. We’ll continue to fight for the consumers of Los Angeles County,” Hochman said. “For businesses operating across California, we know this. District lawyers from all over the state come together and take responsibility.”
Shein’s $700,000 settlement will be split into four district attorney’s offices after deducting the $100,000 investigation fees, the DA’s office said.
The settlement also prohibits Sheen from issuing untrue or misleading statements about shipping times and must comply with California law regarding delayed shipping.
In response, Sheen told NBC Los Angeles that it “completely cooperated” in the investigation, but did not admit responsibility.
“(We) have taken steps to ensure that delivery and customer practices and communications are in compliance with applicable laws, including strengthening internal processes to provide customers with clearer and more complete information about delivery timelines,” the company said in a statement.
Shane’s estimated global revenues for 2024 were around $50 billion, with the US being the company’s largest market.
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