Temu sues Shein, alleging “Mafia-style” tactics

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 measures to coerce merchants into cutting ties with Temu.

According to the complaint, Shein has gone as far as falsely imprisoning merchants associated with Temu, confiscating their electronic devices, and accessing proprietary information. These drastic actions are seen as a response to Shein’s declining valuation, which coincided with Temu’s successful entry into the U.S. market.

“Mafia-style” tactics As stated in the lawsuit, “Shein has now resorted to more aggressive methods of targeting suppliers believed to be selling products on Temu, including an ongoing program of summoning Temu’s suppliers on false pretenses to Shein’s offices, detaining those suppliers’ representatives in Shein’s office for up to ten hours, seizing these Temu…