Fast-fashion giant Shein reportedly sued rival company Temu, alleging copyright infringement.
In a civil complaint filed in Washington, D.C., Shein alleged that Temu encourages sellers on its marketplace to steal other brands’ designs and prevents them from removing products from the platform, even in cases in which the seller admits to infringement, CNBC reported Monday (Aug. 20).
Shein also alleged in the complaint that Temu directed sellers to copy Shein products after a Temu employee stole sales data and internal pricing information about some best-selling Shein products, according to the report.
Other allegations in the suit said Temu used or encouraged sellers to use copies of copyrighted images of Shein products on the Temu website; ran online ads that appeared to be from Shein but directed viewers to Temu’s website; and paid social media influencers to make false claims about Shein goods, per the report.
Temu did not immediately reply to PYMNTS’ request for comment.
The report comes about a year after Temu filed a lawsuit against Shein, accusing it of violating U.S. antitrust law in its dealings with clothing manufacturers.
Temu’s claims in the lawsuit filed in July 2023 revolved around Shein using its market power to coerce manufacturers into shunning Temu, leading to higher prices and fewer consumer choices.
A spokesperson for Shein said at the time that Temu’s lawsuit was “without merit” and Shein would “vigorously defend” itself.
Both Temu and Shein have become heavyweights in the online arena by offering low prices. Temu offers a diverse product mix and attractive discounts, while Shein provides clothing and various items at affordable prices.
It was reported in June that Amazon would add a section to its shopping site that aims to compete with the two companies, featuring cheap items that are shipped from China to overseas customers and are delivered in nine to 11 days.
When asked about this report at the time, an Amazon spokesperson said: “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices and greater convenience.”
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