Fast-fashion giant Shein disclosed in its Hong Kong IPO filings that its U.S. operations are under investigation by the U.S. Federal Trade Commission (FTC). Shein stated that it is actively cooperating with the investigation, but the nature of the probe remains unclear. The company warned that the outcome of the investigation could result in it having to pay a substantial sum, which would have a material adverse effect on its financial condition and operating results. The FTC is a U.S. consumer protection agency responsible for investigating deceptive or unfair business practices, including tactics such as “dark patterns.” Shein has already received approval for its Hong Kong listing, but the specific transaction date has not yet been determined.