Temu Accuses Rival Shein of ‘Intimidation’ in Federal Lawsuit
The rivalry between two Chinese online retailers spilled over into U.S. federal court. In an antitrust suit filed in Massachusetts last week, Temu accuses fast-fashion competitor Shein of trying to hurt its business. “Shein has engaged in a campaign of threats, intimidation, false assertions of infringement, and attempts to impose baseless punitive fines and has […]
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The rivalry between two Chinese online retailers spilled over into U.S. federal court.
In an antitrust suit filed in Massachusetts last week, Temu accuses fast-fashion competitor Shein of trying to hurt its business.
“Shein has engaged in a campaign of threats, intimidation, false assertions of infringement, and attempts to impose baseless punitive fines and has forced exclusive dealing arrangements on clothing manufacturers,” says the Temu complaint, filed in U.S. District Court July 14 and widely reported in recent days.
The suit accuses Shein of using its dominant position in the U.S. “fast fashion” market to corral suppliers in China into exclusive relationships, thus robbing consumers in the U.S. of access to competitive prices and hindering Temu’s sales.
“For a long time, we have exercised significant restraint and refrained from pursuing legal actions,” Temu said in a statement provided to PYMNTS.
“However, Shein’s escalating attacks leave us no choice but to take legal measures to defend our rights and the rights of those merchants doing business on Temu, as well as the consumers’ rights to a wide variety of affordable products.”
“We believe this lawsuit is without merit and we will vigorously defend ourselves,” a Shein spokesperson told PYMNTS.
Both companies have become extremely popular in the U.S. among consumers thanks to their low-priced clothing — and increasingly, other goods — from China.
Temu is an offshoot of eCommerce company Pinduoduo, which launched last year in the U.S. and gained more prominence earlier this year when ads for its app aired during the Super Bowl.
More recently, the company has gotten less flattering attention as the target of a copyright infringement lawsuit by Amazon sellers who claim their listings — including product images and descriptions, were replicated by other merchants on Temu.
“These Temu sellers are stealing other people’s information, making false advertisements, and hurting the interests of consumers,” one Amazon seller said in a report by Wired.
An Amazon spokesperson told Wired: “We strongly condemn this type of criminal activity. If a brand believes their Amazon product information or images are being copied and used to sell infringing products elsewhere, we encourage them to contact our Counterfeit Crimes Unit.”
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