In the fast-paced world of fashion, two Chinese retail giants are locked in a battle for dominance, and the stakes are rising. It’s not just about who can offer the cheapest clothes — it’s a legal showdown exposing the competition behind those rock-bottom prices. Allegations of counterfeiting, intellectual property theft and questionable business practices have surfaced as both companies try to outmaneuver each other.
On Monday, Aug., 19, Shein accused Temu of running an “unlawful enterprise” built on the theft of trade secrets and intellectual property infringement.
Shein’s lawsuit claims Temu engaged in unethical tactics, including using Shein’s trademark in ads and pretending to be Shein on social media to mislead customers. The suit also alleges Temu is losing $30 per order in an attempt to undercut Shein and secure its market position.
Both companies have exchanged lawsuits in the past, with accusations ranging from pressuring merchants to cut ties with competitors to making false claims and stealing trade secrets.
Temu claims Shein has used aggressive tactics to disrupt its business. In a 2023 lawsuit, Temu alleged Shein intimidated merchants who sell on both platforms, issued false copyright takedowns and even detained merchant representatives, confiscating their devices to access confidential information.
Both companies continue to face criticism for their labor practices and selling knockoff designs, which further complicates their legal battles. Shein is currently involved in a class-action lawsuit, accused of stealing from small designers and artists. The company has also been sued by major brands like H&M, Levi Strauss and Uniqlo.
A Temu spokesperson responded to Shein’s latest accusations, stating it’s “unbelievable” that Shein, which is already facing numerous IP lawsuits, would accuse others of the same misconduct it’s constantly being sued for.
As both retailers navigate the murky waters of intellectual property and ethical concerns, one thing is clear: In fast fashion, the lawsuits are just as fast.
