Shein Sued Over Alleged Fake Discounts: Lawsuit Claims "Sale" Prices Were Never Real

Shein is being sued over allegations that its constant "sales" are fake.

A new class action lawsuit filed in California federal court accuses the fast fashion giant of inflating "reference prices" across its product catalog to make customers believe they were scoring deep discounts — when, according to the complaint, those higher prices were never real to begin with.

Lead plaintiff Stacee Severino filed the case on May 5, 2026 against Shein US Services, Roadget Business, and Zoetop Business. The complaint alleges that Shein's house-brand products "were rarely offered and likely never sold at the full reference price," including during the six months before they appeared on sale.

In other words: the lawsuit claims the crossed-out price you see next to the discount isn't a price Shein actually charges. It's just a number designed to make the real price look like a steal.

How the alleged scheme works

According to the complaint, Shein advertises a "reference price" — the original, higher price — alongside a marked-down sale price on its Shein-branded items. The lawsuit alleges these reference prices were not the typical prices charged by Shein in the recent past. Plaintiffs say the products' actual market value was lower than both the reference price and the discounted sale price.

The complaint argues this tactic artificially drives up demand and inflates prices, meaning consumers walk away with products worth less than what they paid. The lawsuit estimates Shein has reaped billions in revenue from the alleged scheme.

The plaintiffs are represented by Milberg PLLC and Cafferty Clobes Meriwether & Sprengel LLP, and are seeking damages, restitution, and class certification on behalf of anyone in the U.S. who purchased Shein-branded items at a discount from a higher advertised reference price.

Who could be eligible

The proposed class covers anyone in the United States who bought a Shein-branded product at a discount from an advertised reference price. No settlement has been reached yet — this is an active lawsuit, not a finalized payout.

To be clear, this is a brand new case. It's separate from the earlier class action against Temu and Shein over the price hikes both companies rolled out to cover Trump's China tariffs — the same tariffs the Supreme Court later ruled were unconstitutional. That case is about tariff-related price increases. This one is about Shein allegedly faking its discounts entirely.

What happens next

There's no settlement, no claim form, and no deadline yet. The case is in its early stages.

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