Shein Sues Temu for Alleged Copyright Infringement

Online fast-fashion giant Shein has filed another lawsuit against rival Temu, accusing the China-based shopping platform of stealing designs, copying product images and other forms of fraud.

The complaint, filed this week in a federal court in Washington, alleges that Temu, which is gaining popularity in the U.S., subsidized the low prices by encouraging sellers to offer counterfeit items, stolen designs and inferior quality products.

The allegations come after Shein itself has been the target of lawsuits from brands and designers who accuse the company of stealing their designs and selling counterfeit goods on its e-commerce site.

Asked for comment on the new lawsuit, a spokesperson for Temu said in a prepared statement that Shein’s “boldness is incredible.”

“Shein, buried under its own mountain of intellectual property lawsuits, has the audacity to fabricate accusations against others for the very misconduct for which it is repeatedly accused,” the spokesperson said.

The new lawsuit against Temu is an escalation of the ongoing feud between the two companies, which have previously sued each other in US court.

Temu, a platform owned by Chinese e-commerce company PDD Holdings, alleged in a previous lawsuit that Shein forced clothing manufacturers to submit to unfair supply chain arrangements to avoid working with Temu.

Shein, which was founded in China but is now based in Singapore, sued Temu for deceptive trade practices and misleading consumers by creating fake social media accounts that used Shein’s name but redirected people to Temu’s platform.

The companies dropped those lawsuits in October. Temu sued Shein again in December, accusing his rival of using “mafia-style intimidation” of suppliers to hinder its growth in the U.S.

Lawyers for Shein wrote in the new complaint that at least one Temu employee stole Shein’s “valuable trade secrets” related to top-selling products and internal pricing information.

They also alleged again that Temu was falsely representing itself as Shein through impostor X accounts that directed customers to Temu’s site. They further alleged that Temu engaged in similar practices through sponsored Google ads.

—Haleluya Hadero, Associated Press business writer