Shein Spent $600,000 on US Lobbying Efforts — Retail Bum

Fast fashion giant Shein spent $600,000 on lobbying efforts in the U.S. in Q2 in the face of ongoing scrutiny against its opaque supply chain and reliance on forced labor.

That is in addition to the $230,000 the company spent in the first quarter to fund its lobbying operations.

Shein’s lobbying efforts come at a time when the company is working to clean up its image in the eyes of Washington lawmakers and the broader public as it prepares to go public. Earlier this month, it was rumored that the company has already filed its S-1 form to go public, although Shein denied the news reports.

The company recently became the target of two dozen U.S. representatives for allegedly falsifying reports focusing on its reliance on underpaid labor at its supplier factories and forced labor in Xinjiang, China. The group of lawmakers has asked the Securities and Exchange Commission (SEC) to verify that Shein’s business is not dependent on forced labor before it can list itself in New York.

Furthermore, the U.S. Congress is seeking to tighten the de minimis loophole, which is being exploited by fast fashion companies such as Shein to avoid scrutiny of shipments valued at $800. According to lawmakers, the provision enables Shein to circumvent safeguards against using forced labor.