Shein & Influencers Sued Over "Fake" Endorsements

Case Overview: A class action lawsuit claims Shein and social media influencers misled consumers with undisclosed paid promotions, violating consumer protection laws.

Consumers Affected: Consumers who purchased Shein products online based on influencer recommendations.

Court: U.S. District Court for the Northern District of Illinois, Eastern Division

Shein and a group of high-profile social media influencers are facing a lawsuit accusing them of deceiving American shoppers through undisclosed paid promotions. The lawsuit claims that the fast-fashion retailer and influencers—including Anastasia Karanikolaou, Cindy Prado, and Bianca Anastasia Arcori—tricked consumers into overpaying for low-quality clothing by falsely presenting paid endorsements as genuine recommendations.

Filed by a group of shoppers, the lawsuit alleges that Shein orchestrated a scheme in which influencers promoted its products without disclosing their financial ties to the company—an allegedly deceptive practice that misled consumers into believing the endorsements were unbiased. Plaintiffs say they relied on these influencer recommendations when purchasing Shein products, only to receive items that were worth far less than expected.

Shein and Influencers Accused of Deceptive Marketing Practices

Shein shoppers Amanda Bengoechea, Rachel Berkowitz, Shantel Hash, Rebekka Lien, Diana Lopez, Shaintiel Poole, Jully Romero, and Jennifer Simoni filed the proposed class action lawsuit claiming they bought Shein products between 2022 and 2024, relying on endorsements from influencers including Anastasia Karanikolaou, Cindy Prado, and Bianca Anastasia Arcori. 

They argue that if they had known these influencers were being paid to promote Shein, they would not have made their purchases. According to the lawsuit, Shein’s rapid rise—growing from $3 billion in revenue in 2019 to $30 billion in 2022—was largely fueled by social media marketing. The company’s strategy allegedly relied on influencers to present themselves as everyday consumers who genuinely loved Shein’s products, rather than paid brand ambassadors.

Lawsuit Alleges Undisclosed Paid Promotions Misled Consumers

The lawsuit outlines a marketing strategy in which influencers tagged and recommended Shein items without properly disclosing their financial relationships with the brand. The complaint alleges that while U.S. advertising laws require such disclosures, Shein’s influencers either hid their sponsored status in long lists of hashtags or omitted disclosures entirely.

Shein allegedly profited from this deception by making shoppers believe they were receiving unbiased recommendations, leading them to pay more for products that, in reality, were worth far less. Plaintiffs claim this manipulation resulted in artificially inflated prices and unfair business practices.

The lawsuit also accuses Shein of failing to comply with Federal Trade Commission guidelines, which require influencers to use clear and conspicuous disclosures—such as Instagram’s “paid partnership” tag—when endorsing products for compensation.

Shein Faces Other Lawsuits and Legal Challenges

This isn’t Shein’s first run-in with the law. The retailer is already facing a separate lawsuit under the Racketeer Influenced and Corrupt Organizations (RICO) Act for allegedly stealing independent designers’ work and using a complex corporate structure to avoid accountability.

Additionally, Shein is battling a class action lawsuit accusing it of violating federal and Florida consumer protection laws by sending unsolicited marketing texts to consumers who had attempted to opt out.

Meanwhile other retailers are also facing lawsuits over allegedly deceptive business practices, with many recently being accused of misleading customers with fake sales and deceptive pricing. 

Banana Republic was hit with a lawsuit alleging that its outlet stores advertise fake discounts, tricking customers into believing they’re getting a deal. Similar allegations have been made against Ann Taylor Loft and Ralph Lauren’s Polo Factory Outlets where lawsuits claim that advertised sale prices were never actually higher to begin with.

In their lawsuit against Shein and the influencers, the shoppers want to represent anyone else who has purchased Shein products online since 2019 relying on misleading influencer marketing.

Case Details

• Lawsuit: Bengoechea, et al. v. Roadget Business PTE. LTD D/B/A Shein, et al.
• Case Number: 1:25-cv-01402
• Court: U.S. District Court Northern District Illinois Eastern Division 

Plaintiffs' Attorneys

• Keith L. Gibson and Bogdan Enica (Keith Gibson Law, P.C.)

Have you purchased products from Shein based on influencer recommendations? Share your thoughts on this lawsuit in the comments below.