Online shopping giant Temu is suing its competitor Shein, claiming the fast fashion giant uses “mafia-style” intimidation tactics on retailers.
In the lawsuit filed Wednesday, Temu says Shein has used increasingly aggressive strategies to “unlawfully interfere with Temu's business,” including intimidating merchants offering its products on both platforms and issuing tens of thousands of unlawful takedowns for copyright infringement.
Temu and Shein have previously sued each other
“Shein has recently gone so far as to falsely imprison merchants doing business with Temu, including detaining merchant representatives in Shein's offices for hours while Shein confiscated merchants' electronic devices, gaining access to proprietary Temu information through merchants' seller accounts and…” “threatens dealers with penalties for doing business with Temu,” the lawsuit says. Shein did not immediately respond to a request for comment.
The lawsuit filed this week offers a rare glimpse into the business dealings of Temu, the sprawling bargain-priced online superstore that is growing rapidly in the United States. For example, the lawsuit states that more than 100,000 images are uploaded to Temu.com every day and that it receives an average of 170 takedown requests for copyright infringement every day – 63 percent coming from Shein.
The lawsuit comes as Shein prepares to go public in the US, which could happen in 2024. But for years the company has been embroiled in controversy over its labor practices, supply chain and pattern of small businesses selling copies of items. Shein has tried to deflect some of the criticism: In 2022, the company announced it would spend $15 million to improve standards in factories after a report found that workers were subjected to unlawfully long hours and withheld wages . Shein has also hosted several in-person events in the US, an attempt to pull back the curtain and interact directly with shoppers (one such event in New York left me with many questions).
Read the full suit below: