- Shein was sued by rival Temu, alleging “mafia tactics” like false imprisonment of merchants.
- The suit claims Shein aims to sabotage Temu’s Super Bowl ad campaign over customer poaching fears.
- Legal spat marks the battle between Chinese retailers vying for US fast fashion dominance.
Legal Battle Escalates
China’s Shein is facing a new lawsuit from rival Temu, owned by Chinese giant Pinduoduo, accusing it of aggressive intimidation to hinder US operations.
Filed Wednesday, the suit alleges Shein engaged in “mafia-style” tactics like falsely imprisoning Temu merchants for hours.
Temu also claims Shein unlawfully sabotaged its business by falsely registering copyrights. In a statement, Shein dismissed the litigation as “without merit.”
The escalating legal spat marks intensifying competition between the Chinese fast fashion retailers vying for US market share. Temu entered the US in September 2022, and Shein in 2019.
Allegations of Sabotage
Per the filing, Temu says Shein aims to disrupt a major Temu ad campaign launching ahead of Super Bowl 2023 out of fear of losing customers.
Temu previously sued Shein in July for alleged antitrust violations.
Shein countersued Temu in December, accusing it of defamation using influencer smear campaigns. A Shein IPO is also reportedly forthcoming amid its US growth push.
Both sites offer ultra-low-cost clothing and lifestyle goods shipped from China. Temu parent PDD operates the leading Chinese marketplace, Pinduoduo.
Market Share Clash
In a statement, Temu said Shein’s actions “were too exaggerated,” necessitating the new suit over systematically obstructing operations.
The open hostilities mark intense competition between the Chinese e-commerce giants transplanted to US shores.
Temu alleges Shein resorted to aggressive intimidation as its market lead was threatened.
With legal action mounting from both sides, the race for American bargain shoppers looks poised to play out as much in court as on the virtual shelves.
