Shein Faces Class Action Over Influencer Posts

A recent class action asks how it's possible that a Chinese company, with allegedly "no fashion designers or background, selling flea-market quality clothes, became a giant in the fast-fashion industry in the US?" The answer, according to the complaint, "is simple: undisclosed endorsements on social media." In this case, the plaintiffs allege that Shein engages influencers to promote its products without disclosing their relationships to the company.

Plaintiffs residing in three states allege that they purchased products from Shein as a result of endorsements from seven influencers on Instagram. According to the complaint, though, some of the influencers don't disclose their connection to the company at all. Other influencers do disclose their connection to the company, but do so in a long list of hashtags that are only visible if a consumer clicks on the "more" button on the posts.