Shein sues Temu for counterfeiting and fraud
Because Temu is alleged to have stolen designs, the low-cost provider is now being sued by Shein. Curious: Shein is accused of the same thing.
There is a dispute between Shein and Temu. The fast fashion provider is suing the low-cost competitor and accusing it of copyright infringements. Temu is alleged to have stolen designs from Shein and made money with counterfeits and fraud. Shein has therefore filed a lawsuit in a federal court in Washington D.C.
The accusations
Temu is only masquerading as a legitimate online marketplace because the company encourages sellers to steal brand designs and even prevents them from removing products from the platform after the fact if they admit to plagiarism allegations, according to the accusation. Because Temu offers such enormously favourable prices, the business is not profitable. ‘Only by encouraging its sellers to infringe the intellectual property rights of others and sell counterfeit or inferior goods can Temu hope to minimise the massive losses it is accumulating,’ the statement of claim reads.
Shein: A dog barked at a dog
Shein's lawsuit is not without a certain irony, as the company itself is the target of various copyright lawsuits. Brands such as H&M and Levi Strauss accuse Shein of exactly the same thing that Shein is now criticising Temu for. A company spokesperson for the marketplace says: ‘This audacity is unbelievable. Shein, buried under its own mountain of intellectual property litigation, has the gall to make up allegations against others for the very misconduct for which they are repeatedly sued.’
Huge market share
The two companies, which have been gaining huge market share in Europe and the US for a while now, have been suing each other with good regularity. Last year, Temu sued Shein for copyright infringements and accused the fast-fashion provider of mafia-like intimidation of suppliers. What they both have in common is that the criticism from outside continues unabated. The latest accusation is tax fraud because Temu and Shein disregard customs restrictions.