Shein is facing enforcement action from the State of Texas, which is accusing the ultra-fast fashion giant of misleading consumers about both the safety of its products and the handling of their personal data. In a complaint filed in Collin County District Court on February 20, Texas Attorney General Ken Paxton alleges that Shein violated the Texas Deceptive Trade Practices Act (“DTPA”) by selling goods containing elevated levels of toxic chemicals and by failing to disclose that consumer data may be accessible to the Chinese government.
The lawsuit – which names Shein US Services, LLC, Shein Distribution Corporation, Shein Technology LLC, Roadget Business Pte Ltd., and Zoetop Business Co., Limited – seeks civil penalties of up to $10,000 per violation, as well as temporary and permanent injunctive relief.
Product Safety & Compliance Claims
In the newly-filed case, Texas advances two primary theories of liability. First, the State claims that Shein misrepresented the “quality” and “safety” of products sold on its website and app. The complaint points to independent testing that allegedly found elevated levels of lead, PFAS, phthalates, cadmium, and formaldehyde in clothing and accessories, including items marketed to children and pregnant women.
The State also alleges that certain children’s products fail to meet U.S. safety standards, including drawstring hoodies that pose strangulation risks and sleepwear that does not comply with flammability requirements.
Texas contends that by marketing these goods without disclosing such risks, Shein violated multiple provisions of the DTPA, including prohibitions on representing that goods have “characteristics” or “quality” that they do not possess and failing to disclose material information intended to induce consumers into transactions.
Second, and more notably, Texas alleges that Shein’s privacy disclosures are materially misleading. According to the complaint, Shein’s privacy policy outlines categories of third parties with whom data may be shared but does not disclose that, under Chinese national intelligence and cybersecurity laws, the company could be compelled to provide access to consumer data to the Chinese government. The omission, Texas argues, is material because consumers would not have entered into transactions had they known their data could be accessed by the Chinese Communist Party.
Looking Ahead
The lawsuit follows Governor Greg Abbott’s January 2026 decision to add Shein to Texas’s “Prohibited Technologies List,” which restricts the use of certain companies’ hardware and applications on state-owned devices. While the designation does not directly regulate consumer transactions, the State cites it as evidence of broader concerns about data security and foreign government access.
In addition to civil penalties, Texas is seeking a temporary restraining order and temporary injunction that would prohibit Shein from collecting, sharing, or disclosing Texas consumers’ data during the pendency of the litigation. The State also asks the court to require Shein to make “clear and conspicuous” disclosures regarding (1) products that contain harmful levels of toxic substances and (2) the possibility that consumer data may be accessed by Chinese governmental entities.
A spokesperson for Shein told TFL, “At SHEIN, we take our responsibilities to our customers seriously and we are committed to providing a safe, secure, and reliable shopping experience. We strongly disagree with the allegations in the complaint and will prove our position in court. Like Attorney General Paxton, we are dedicated to protecting the health and personal information of Texans and all of our customers, and remain focused on maintaining our high standards for product safety and data security.”
THE BIGGER PICTURE: The case marks one of the most aggressive state-level actions to date targeting an ultra-fast fashion retailer’s product safety and data governance practices. It also reflects an emerging enforcement strategy: using consumer protection statutes to address not only chemical compliance and product standards, but also cross-border data access risks.
For Shein, the lawsuit presents potentially significant financial exposure and the possibility of operational constraints in one of its largest U.S. markets. For the broader fashion industry, the action underscores growing scrutiny around supply chain safety, digital platform disclosures, and the intersection of retail and geopolitics.
The case is State of Texas v. Shein US Services, LLC et al., (Collin County District Court).
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