Is Shein a Scam?

Shein is a real online fast-fashion retailer founded in 2008 in China, with headquarters now in Singapore. The company has grown to become one of the world's largest fashion retailers, with the app ranking as the second most downloaded shopping app worldwide in 2024. **Why Shein is Legitimate:** • Registered company operating globally with official website and app • Millions of successful orders processed and delivered • Uses SSL encryption and PCI-compliant payment processing • Offers two-factor authentication for accounts • BBB rating of "A" (though not accredited) • 4.0 out of 5 stars on Trustpilot **Why Shein Has Problems:** **Product Safety Concerns:** • CBC Marketplace investigation found children's jackets with lead levels 20 times over Canada's health safety limits • German consumer lab found phthalates, lead, and formaldehyde in garments exceeding EU legal limits • Phthalates linked to hormone disruption and fertility issues • Products often contain cheap polyester (80%+ of materials) **Intellectual Property Issues:** • Coach filed trademark lawsuit in March 2025 for counterfeit products • Oakley accused Shein of design theft • Lawsuits from Ralph Lauren, Deckers (UGG, HOKA, Teva) • Currently facing a RICO lawsuit for "systemic intellectual property theft" • Multiple independent designers have accused Shein of copying designs **Labor & Ethics Concerns:** • Reports of poor working conditions in supply chain • Investigations indicating some workers, including minors, subjected to long hours • Lack of supply chain transparency • Ongoing forced labor accusations **Data Privacy:** • 2018 data breach affected 39 million customers • France accused Shein in July 2025 of not properly informing users about tracker cookies • Extensive data collection through app permissions