Fashion

Temu sues Shein, alleging “Mafia-style” tactics

A legal showdown is unfolding between two fast-fashion giants.

Published: Dec 14, 2023 1:07 PM

By Jeanel Alvarado

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Temu sues Shein, alleging “Mafia-style” tactics

A legal showdown is unfolding between two fast-fashion giants. Temu, an emerging player in the industry, has taken legal action against Shein, accusing the latter of employing “Mafia-style” intimidation tactics to manipulate merchants and undermine Temu’s market presence.

In a legal complaint filed December 13th, 2023, Temu describes a range of unlawful and anticompetitive actions undertaken by Shein, including using Mafia-style intimidation tactics to force merchants not to work with Temu and abusing the DMCA notice process to cripple Temu.

While the war for the merchants that serve the world’s largest consumer market is taking place in Guangzhou, China, the legal battle for this dominance is being fought out of D.C. Temu’s allegations are not new; the company previously filed a lawsuit in July 2023, challenging Shein’s Exclusive-Dealing Agreements with suppliers.

These agreements allegedly coerced suppliers into loyalty, preventing them from doing business with competitors like Temu. (Amended Complaint & Demand for Jury Trial, Whaleco Inc. v. Shein US Servs., LLC et al., No. 1:23-cv-11596-DJC (D. Mass. Oct. 2, 2023), ECF No. 44).

Despite both parties voluntarily dismissing their respective lawsuits without prejudice in October 2023, Temu claims that Shein’s anticompetitive behavior has escalated rather than ceased. The core of Temu’s recent lawsuit revolves around two main accusations: Firstly, Temu asserts that Shein has resorted to extreme…

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A legal showdown is unfolding between two fast-fashion giants.

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