This was according to the company’s draft prospectus at the Hong Kong Stock Exchange, which identified the FTC investigation among the legal risks the company is facing ahead of its planned initial public offering. The FTC confirmed this, saying it is conducting a consumer protection investigation into Shein, according to a report from Reuters. Further details about the FTC investigation are still scarce, but this is another bump in the road for a company that has been trying—but largely failing—to go public over the last few years in three different markets. First, Shein tried but failed to go public in the U.S. in 2023 under the weight of immense political pressure. Shein is also under investigation in Europe.