The massive online retailer of fast fashion, Shein, has launched a fresh legal action against rival Temu, charging the Chinese-based marketplace with violating copyright by stealing designs, ripping off product photos, and carrying out fraudulent schemes. This Monday, a federal court in Washington received a lawsuit alleging Temu has been incentivizing vendors to offer subpar goods, stolen designs, and counterfeit goods in order to justify its low costs.
The two businesses have been at odds for some time and have both sued the other in US courts before; this lawsuit is the most recent development in their legal battle. Shein’s allegations have been refuted by Temu, which is owned by the Chinese e-commerce giant PDD Holdings. Temu is accused of unfair supply chain methods, such as pressuring manufacturers to stay away from Temu.
In response to the new lawsuit, a Temu spokesperson stated, “Shein, buried under its own mountain of IP lawsuits, has the nerve to fabricate accusations against others for the very misconduct they’re repeatedly sued for.” The spokesperson criticized Shein’s actions as hypocritical, given that Shein itself has faced numerous lawsuits from brands and designers accusing it of selling copycat items.
Shein’s legal complaint also alleges that a Temu employee stole trade secrets, including information on best-selling products and internal pricing strategies. Additionally, Shein accused Temu of misleading consumers by creating impostor accounts on X (formerly Twitter) that falsely presented themselves as Shein and directed customers to Temu’s platform. Shein further claimed that Temu engaged in similar practices through sponsored Google ads.
The legal battle between Shein and Temu has been intensifying, with both companies previously dropping lawsuits in October, only for Temu to file another suit in December, accusing Shein of employing “mafia-style intimidation” against suppliers to hinder Temu’s growth in the U.S.
