Marrakech – Chinese-linked fast-fashion titan Shein is taking its rival Temu to court, accusing it of pilfering designs and building its empire on a dubious foundation of counterfeiting, intellectual property infringement, and fraud.
The suit hits the federal court in Washington, D.C., just as the fashion giant finds itself juggling a slew of accusations from brands like Levi Strauss and H&M.
Shein’s complaint accuses Temu, under the banner of PDD Holdings, of “masquerading” as a legitimate marketplace while actively encouraging sellers to lift designs.
The lawsuit claims Temu then keeps these infringing products on its site, even after sellers admit to the plagiarism.
“Temu draws U.S. consumers into downloading and using its mobile application with promises of extremely low pricing. But Temu is not profiting from the sale of these products, which are priced so low that Temu must subsidize each sale, losing money on every transaction,” the complaint highlighted.
“Only by encouraging its sellers to infringe the intellectual property rights of others and sell counterfeit or sub-standard goods can Temu hope to minimize the massive losses it is subsidizing,” the lawsuit concluded.
A Temu spokesperson fired back, declaring that Shein’s “audacity is unbelievable.”
The spokesperson added, “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.”
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The dueling e-tailers have rocked the retail world with their jaw-droppingly low prices and lightning-fast trend responses, leaving legacy competitors in their dust.
But their success story is not all glamor and glitz — both brands have faced a torrent of criticism for their labor practices, ties to the Chinese government, and a knack for allegedly swiping other brands’ designs.
As these fashion powerhouses tussle for market dominance, their courtroom clashes are turning into a scandalous spectacle.
Temu fired the first shot last year with a lawsuit against Shein, accusing the rival of using “mafia-style intimidation” to coerce suppliers into exclusive deals.
Shein is charging Temu with “brazen” misconduct in its latest courtroom salvo, alleging that a Temu employee pilfered “valuable trade secrets” from their rival company.
These secrets reportedly included top-selling product data and internal pricing info, all allegedly used to give Temu an edge in the cutthroat fashion race.
Armed with this stolen intel, the complaint suggested, Temu allegedly directed its sellers to replicate Shein’s best-sellers, flooding its site and app with knock-off versions.
In addition, Shein’s complaint claims that Temu has gone so far as to impersonate Shein on X to “misdirect customers away” from Shein’s platform and onto its own.
The complaint even features a screenshot of a Temu-sponsored Google ad where Shein’s name grabs the headline, but Temu’s URL is the actual destination.
Shein’s hefty 80-page complaint is packed with over a dozen examples of designs Temu allegedly ripped off.
The online brand is pushing for the court to rule in its favor and issue an order banning Temu from using its confidential information, among other demands.
