Shein sues Temu for copyright infringement and fraud

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

The latest legal battle between the two online retailers was filed Wednesday in the United States District Court for 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.

Shein alleges in the complaint that Temu “poses as a legitimate e-commerce ‘marketplace’ where independent sellers can list their products for sale,” but says “facts” show the company monitors all aspects of sellers’ operations 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 the huge losses and that they make up for those losses by selling counterfeit items.

In the complaint, Shein also shows images of Temu posing as Shein and using copyrighted images of Shein on their website and app.

Shein requests a jury trial.

This is not the first time that Shein and Temu have faced each other in a legal battle.

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

Both companies have come under fire over the years. Shein has been accused of unsafe working conditions in its workplaces, including long hours and low wages that could be withheld for any product defects. In the case of Temu, a coalition of 21 attorneys general have joined to question the company’s ties to the Chinese Communist Party (CCP).

PDD Holdings Inc. is also involved in an ongoing class action securities lawsuit, accusing the company of making false statements about collecting user data without consent and selling prohibited items on Temu.