Shein sues Temu alleging copyright infringement and fraud

(NEXSTAR) - Chinese owned fast-fashion brand Shein is suing rival Temu on allegations of copyright infringement, fraud and theft of trade secrets.

The latest legal battle between the two online retailers was filed on Wednesday in the United States District Court of the District of Columbia. Shein, owned by Roadget Business Pte. Ltd., filed an 80-page complaint against Temu, owned by PDD Holdings Inc., Whaleco, Inc. and Does 1-20.

In the complaint, Shein alleges that Temu "masquerades as a legitimate e-commerce 'marketplace' where independent sellers can offer their products for sale," but says "facts" show the company controls all aspects of seller activity and "encourages [sellers] to infringe the intellectual property rights of others."

Shein goes on to say that Temu subsidizes all sales to make up for large-scale losses and the sale of counterfeited items is how they make up for those losses.

In the complaint, Shein also shows images that allegedly show Temu impersonating Shein and using copyrighted images from Shein on their website and app.

Shein is requesting a trial by jury.

This is not the first time Shein and Temu have faced off in legal battle.

In 2023, Temu sued Shein for "mafia-style" intimidation of merchants who do business with Temu. Earlier that same year, Shein sued Temu, accusing them of telling influencers to make false statements about Shein.

Both companies have been subject to criticism over the years. Shein has been accused of unsafe work conditions in their workshops, including long work hours and low pay that could be withheld for any mistakes made to products. In Temu's case, a coalition of 21 state attorney generals have joined to question the company's ties to the Chinese Communist Party (CCP).

PDD Holdings Inc. is also in the midst of a pending class action securities lawsuit which alleges that the company made false statements about collecting user data without consent and the selling of banned items on Temu.