Temu slams Shein for lawsuit alleging design theft, trademark infringement

On Aug. 19, Chinese retail company Shein filed a lawsuit against rival Chinese fast-fashion retailer Temu, accusing it of stealing designs and engaging in counterfeiting, intellectual property infringement and fraud.

The lawsuit: Shein alleges that Temu encourages sellers to copy designs and prevents them from removing infringing products. The lawsuit also claims Temu uses deceptive tactics, such as misleading ads and false social media claims, to divert customers from Shein. “Temu draws U.S. consumers into downloading and using its mobile application with promises of extremely low pricing. But Temu is not profiting from the sale of these products, which are priced so low that Temu must subsidize each sale, losing money on every transaction,” the complaint said.
Temu’s response: Temu has dismissed Shein’s accusations as hypocritical. “Shein, buried under its own mountain of IP lawsuits, has the nerve to fabricate accusations against others for the very misconduct they’re repeatedly sued for,” said a Temu spokesperson. Shein is currently involved in similar allegations from a variety of brands and independent artists, including Levi Strauss and H&M. Last year, Temu also filed a lawsuit against Shein, accusing the company of copyright violations and alleging that Shein employs “mafia-style intimidation” tactics to pressure suppliers into signing exclusivity agreements.

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