Shein has been hit with another lawsuit, this time by Chinese e-retailer Temu.
Business of Fashion reports that Temu claimed Shein has been in violation of US antitrust law in regard to its relationship with its clothing manufacturers. The fast fashion retailer filed the suit last Friday in Boston.
Temu has alleged that Shein has strong-armed manufacturers into shunning Temu. The complaint says that Shein “forces manufacturers to sign loyalty oaths certifying that they will not do business with Temu.”
Additionally, Temu has accused Shein of utilizing business practices that have boosted prices and left customers with limited options. Shein allegedly also hindered “the expansion of the ultrafast fashion market in the United States” per court documents.
A Shein spokesperson slammed Temu’s lawsuit, saying it was “without merit, and we will vigorously defend ourselves.”
This is the second legal matter between the two companies. Shein took Temu to court in Chicago for accusations of Temu influencers slandering Shein online; now, Temu is waiting to find out if a judge will accept its bid to toss the case out.
Shein was also sued last week by a handful of Los Angeles designers for alleged copyright infringement in a RICO case. The designers have accused the fast fashion retailer of running a company that steals the intellectual property of designers while employing a corporate structure that permits the company to bypass claims of theft with small legal consequences.
