Earlier this week, a lawsuit was filed by Temu against Shein, reigniting the ongoing rivalry between the two e-commerce giants. This legal battle comes after both companies previously sued each other and subsequently dismissed the lawsuits in October. However, Temu’s latest legal action alleges that Shein has continued and intensified its anticompetitive behavior, prompting the renewed legal confrontation.
Key Takeaway
Temu’s latest lawsuit against Shein has brought to light a range of allegations, including anticompetitive behavior and misuse of intellectual property rights, intensifying the ongoing legal battle between the two e-commerce rivals.
The Allegations
According to the complaint, Temu claims to have discovered that Shein’s anticompetitive actions have not only persisted but also escalated since the previous lawsuits were dropped. The lawsuit asserts that Shein has engaged in a series of illegal acts, including filing dubious copyright infringement lawsuits against Temu and issuing bad-faith DMCA takedown notices. Moreover, Temu alleges that Shein has been leveraging its dominance in the U.S. ultrafast fashion market to enter into exclusive-dealing agreements with suppliers, thereby improperly seizing suppliers’ intellectual property rights to prevent them from selling similar products on Temu or other platforms.
Response from Shein
In response to the lawsuit, a Shein spokesperson stated that the company believes the legal action is without merit and has vowed to vigorously defend itself against the allegations.
