Shein sues Temu again over alleged design theft, counterfeiting

Chinese e-commerce giants Shein and Temu are embroiled in yet another court battle in the US. Earlier this month, Shein filed a lawsuit against rival Temu in a Washington, DC, federal court, accusing the rival e-tailer of stealing designs and of building its business through counterfeiting, intellectual property infringement, and fraud. The lawsuit claims that Temu encourages sellers to infringe on other brands’ designs and prevents them from removing infringing products – a claim also leveled against Shein in the past by lesser-known designers. Shein also alleges that Temu uses Shein’s confidential information and deceptively markets counterfeit products as higher quality than genuine Shein goods. The legal battle between the two fast-fashion giants highlights the fierce competition in China’s fashion e-commerce industry amid mounting allegations of unethical practices. Temu has since replied to the claims. "The audacity is unbelievable," a spokesperson at Temu told Jing Daily. "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." In 2023, Shein complained that social media influencers employed by Temu had made “false and deceptive statements” about it. Additionally at the time, according to Shein, Temu created a number of “imposter” social network profiles in an attempt to deceive users into downloading the Temu app. The complaint, filed in December 2022, claims that the influencers Temu employed disseminated statements, such as “I am not with Shein anymore.” Earlier this month, Shein announced plans to open its first warehouse in the UK in anticipation of being listed of a 50 billion British pounds ($64 billion) IPO on the London Stock Exchange. Shein was founded in 2008 and expanded quickly, becoming the biggest fashion retailer in the world by 2022. Based in Singapore, the Chinese e-tailer has surpassed the combined value of fast-fashion pioneers H&M and Zara with a $100 billion valuation, accounting for almost one-fifth of the worldwide fast-fashion market.

Sectors

Insights

Company

Shein sues Temu again over alleged design theft, counterfeiting