Shein files lawsuit against Temu over copyright infringements amid escalating legal battle

Shein has filed a new lawsuit against Temu, accusing the rival platform of copyright infringement

Shein, the online fast-fashion giant, has filed a new lawsuit against competitor Temu, accusing the China-founded shopping platform of copyright infringements, including stealing designs, copying product images, and engaging in fraudulent activities. The lawsuit, filed this week in a Washington federal court, alleges that Temu has been subsidizing its low prices by encouraging sellers to offer counterfeit items, stolen designs, and sub-standard products.

This legal action marks the latest escalation in the ongoing feud between the two companies, both of which have previously sued each other in U.S. courts. Temu, owned by Chinese e-commerce company PDD Holdings, has countered Shein's claims by accusing it of engaging in unfair supply chain practices, including compelling manufacturers to avoid working with Temu.

In response to the new lawsuit, a Temu spokesperson stated, “Shein, buried under its own mountain of IP lawsuits, has the nerve to fabricate accusations against others for the very misconduct they’re repeatedly sued for.” The spokesperson criticized Shein’s actions as hypocritical, given that Shein itself has faced numerous lawsuits from brands and designers accusing it of selling copycat items.

Shein’s legal complaint also alleges that a Temu employee stole trade secrets, including information on best-selling products and internal pricing strategies. Additionally, Shein accused Temu of misleading consumers by creating impostor accounts on X (formerly Twitter) that falsely presented themselves as Shein and directed customers to Temu’s platform. Shein further claimed that Temu engaged in similar practices through sponsored Google ads.

The legal battle between Shein and Temu has been intensifying, with both companies previously dropping lawsuits in October, only for Temu to file another suit in December, accusing Shein of employing "mafia-style intimidation" against suppliers to hinder Temu's growth in the U.S.