The tit-for-tat continues in China, but this time, it’s between two companies, and it’s not just a war of words—it’s turned into a legal battle.
The ongoing rivalry between fast-fashion giants Shein and Temu has intensified as Shein launches a new legal action against its competitor in the United States.
In a complaint submitted to the District Court of Columbia, Temu’s parent company, PDD Holdings, is accused of presenting itself as a legitimate marketplace while allegedly controlling the products that sellers can offer and encouraging infringements of intellectual property rights.
Temu is also accused of using Shein’s trademarks in sponsored advertisements and creating fake social media accounts impersonating Shein to mislead customers.
According to the lawsuit, Temu allegedly instructs sellers to replicate Shein’s products and even supplies them with Shein’s copyrighted images for marketing purposes.
“Temu has employed the same illegal business model to construct a massive counterfeiting and infringement operation in the U.S.,” claims Shein’s legal entity, Roadget, in the court filings.
The complaint further alleges that Temu entices U.S. consumers to download and use its mobile app by offering extremely low prices, often subsidizing sales and losing money on each transaction.
Shein also accuses at least one Temu employee of stealing trade secrets to compete unlawfully and claims Temu impersonated Shein on social media platform Twitter/X.
Shein is seeking compensation for lost sales, reputational damage, and other financial losses.
This lawsuit comes as Shein seeks to improve its image ahead of a planned initial public offering on the London Stock Exchange.
Shein itself faces numerous allegations, ranging from accusations of using Uyghur ethnic minority slave labor in China to employing Mafia-style intimidation tactics against its suppliers.
In fact, Temu accused Shein in a 2023 lawsuit of using “intimidation and detention scare tactics against suppliers who dare to sell to Temu, including false imprisonment and seizure of cell phones during meetings Shein arranges under false pretenses.”
Shein is also no stranger to design infringement claims. For instance, Uniqlo recently accused Shein of selling imitations of its popular ‘Mary Poppins’ shoulder bag. In July 2023, H&M sued Shein for copying its designs, and in the same month, three U.S. designers filed their own copycat claims against the company.
