Shein filed a lawsuit against Temu in Washington

Fast fashion giant Shein has filed a lawsuit against rival Temu in federal court in Washington, CNBC reported. Shein accuses Temu of building its business using counterfeits, intellectual property violations, and fraud, alleging that the retailer has stolen its designs to achieve illicit growth in the market.

This confrontation is just the latest chapter in a long-running dispute between the two e-commerce platforms. Months earlier, it was Temu that sued Shein for allegedly pressuring its suppliers to stop collaborating with them. 

Shein then responded by accusing Temu of using influencers to spread negative information about its brand. Although the previous lawsuits were dropped at the end of 2023, Shein's new legal action once again fuels the conflict between the two companies.

In an 80-page lawsuit filed Monday, Shein lists a number of allegations against its competitor, including:

Sale of counterfeit products: Shein claims Temu offers products that infringe on its intellectual property and uses unauthorized images to promote those items.

Unfair competition: According to Shein, Temu has gained an undeserved position in the U.S. market through unfair practices, just two years after its launch.

Covert losses: Shein alleges that Temu is reportedly losing 30-50% on each order in the U.S., offsetting these losses by selling counterfeit and low-quality products.

Theft of trade secrets: The lawsuit also accuses Temu of misappropriating Shein's confidential information, including the identification of its best-selling products, and using it to launch knockoffs.

In addition, Shein alleges that Temu has used its brand in sponsored Google ads and impersonated Shein on social networks such as Twitter/X to divert consumers to its platform.

Temu response

In response to the allegations, a Temu spokesperson, quoted by CNBC, called Shein's lawsuit “incredibly audacious.” He added that “SHEIN, buried under its own mountain of intellectual property infringement lawsuits, has the gall to invent allegations against others for the very conduct for which it is repeatedly sued.”

Shein's position has also generated criticism. In its defense, the company defines itself as “an online fashion and lifestyle retailer that has built the valuable SHEIN brand through the hard work and creativity of its employees.” 

However, this statement has been challenged, as Shein faces numerous intellectual property infringement lawsuits filed by major brands and independent artists, such as Levi Strauss and H&M. Many critics accuse Shein of suing Temu for the same practices she has been repeatedly accused of.