Shein Intensifies Legal Battle Against Temu, Accuses Rival Of Operating A “Fraudulent” Marketplace
Shein’s parent company, Roadget Business Pte. Ltd., has once again taken legal action against its fast-fashion rival Temu, filing a lawsuit in the U.S. District Court for the District of Columbia. The complaint, lodged on Monday, accuses Temu of a range of serious offenses, including counterfeiting, trade secret theft, trademark and copyright infringement, and operating a fraudulent business model that deliberately confuses customers.
In the detailed 80-page lawsuit, Shein claims that Temu, while presenting itself as an e-commerce marketplace, actually controls its sellers’ activities and encourages them to infringe on Shein’s intellectual property. The complaint alleges that Temu has strategically copied Shein’s designs, used its trademark unlawfully in advertising, and directed influencers to make false and disparaging statements about Shein’s products.
Shein also accuses Temu of misappropriating trade secrets by directing an employee to steal sensitive seller data, which was then shared publicly to teach suppliers how to replicate Shein’s popular products. Additionally, the lawsuit highlights Temu’s creation of “imposter” social media accounts that mislead consumers into believing they are interacting with Shein.
Shein is seeking damages, the disgorgement of Temu’s profits, and an injunction to prevent Temu from engaging in further infringing activities. This latest lawsuit is part of an ongoing legal feud between the two Chinese fashion giants, who have been competing fiercely for market share in the U.S. and beyond.
The legal battles between Shein and Temu have intensified amid growing scrutiny from regulators and consumers, with both companies facing multiple lawsuits and regulatory challenges related to their business practices. As Shein prepares for a potential IPO, the outcome of these legal disputes could significantly impact its public image and market valuation.
