Shein, Temu face off in high-stakes fast fashion lawsuits

[SIMONE DEL ROSARIO]
IN THE FAST-PACED WORLD OF FASHION — TWO CHINESE RETAIL GIANTS ARE LOCKED IN A FIERCE BATTLE FOR DOMINANCE — AND THE STAKES KEEP RISING. THIS ISN’T JUST ABOUT WHO CAN OFFER THE CHEAPEST CLOTHES — IT’S A LEGAL SHOWDOWN THAT’S REVEALING THE CUTTHROAT COMPETITION BEHIND THOSE ROCK-BOTTOM PRICES. COUNTERFEITING — INTELLECTUAL PROPERTY THEFT — AND SHADY BUSINESS PRACTICES ARE SURFACING AS BOTH COMPANIES TRY TO OUTMANEUVER EACH OTHER.

ON MONDAY SHEIN TOOK THE LATEST SHOT — ACCUSING TEMU OF RUNNING AN “UNLAWFUL ENTERPRISE” BUILT ON THEFT OF TRADE SECRETS AND INTELLECTUAL PROPERTY INFRINGEMENT.

SHEIN’S LAWSUIT ACCUSES TEMU OF SEVERAL UNETHICAL TACTICS — USING SHEIN’S TRADEMARK IN ADS — AND PRETENDING TO BE SHEIN ON SOCIAL MEDIA TO MISLEAD CUSTOMERS. THE LAWSUIT ALSO CLAIMS TEMU IS LOSING $30 PER ORDER TO UNDERCUT SHEIN AND SECURE ITS MARKET POSITION.

BOTH COMPANIES HAVE EXCHANGED LAWSUITS BEFORE — WITH ACCUSATIONS RANGING FROM FORCING MERCHANTS TO CUT TIES WITH COMPETITORS TO MAKING FALSE CLAIMS AND STEALING TRADE SECRETS.

ON THE FLIP SIDE — TEMU CLAIMS SHEIN HAS BEEN USING AGGRESSIVE TACTICS TO DISRUPT ITS BUSINESS. IN A 2023 LAWSUIT — TEMU CLAIMS SHEIN INTIMIDATED MERCHANTS WHO SELL ON BOTH PLATFORMS — ISSUED FALSE COPYRIGHT TAKEDOWNS — AND EVEN DETAINED MERCHANT REPRESENTATIVES — CONFISCATING THEIR DEVICES TO ACCESS CONFIDENTIAL INFORMATION.

BOTH COMPANIES CONTINUE TO FACE CRITICISM FOR THEIR LABOR PRACTICES AND SELLING KNOCKOFF DESIGNS — WHICH FURTHER COMPLICATE THEIR LEGAL BATTLES. SHEIN IS CURRENTLY INVOLVED IN A CLASS-ACTION LAWSUIT — ACCUSED OF STEALING FROM SMALL DESIGNERS AND ARTISTS. THE COMPANY HAS ALSO BEEN SUED BY MAJOR BRANDS LIKE H&M — LEVI STRAUSS — AND UNIQLO.

A TEMU SPOKESPERSON RESPONDED TO SHEIN’S LATEST STRIKE — SAYING IT’S UNBELIEVABLE THAT SHEIN — ALREADY FACING NUMEROUS I-P LAWSUITS — WOULD ACCUSE OTHERS OF THE VERY MISCONDUCT IT’S CONSTANTLY BEING SUED FOR.

AS BOTH RETAILERS NAVIGATE THE MURKY WATERS OF INTELLECTUAL PROPERTY AND ETHICAL CONCERNS — ONE THING IS CLEAR: IN FAST FASHION — THE LAWSUITS ARE JUST AS FAST.

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