Shein produces clothing in China to sell online in the United States, Europe and Asia, offering items such as $10 dresses and $5 tops. Originally founded in China, the company relies on drop shipping from a vast network of Chinese suppliers.
Why did Shein sue Temu?
Shein’s lawsuit against Temu, filed in December in Illinois, alleges that Temu told social media influencers to make derogatory comments about the fast-fashion retailer, and tricked customers into downloading the Temu app using social media accounts. “imposters”.
People on social media on TikTok often mention Shein in posts about Temu, comparing the companies and their products.
“I’m not with Shein anymore,” one influencer said in a February TikTok post. “I am with Temu that she has the same and more for less.”
At least three web pages, now removed, were created in September and featured the company’s logo and marketing material, according to screenshots provided with Shein’s complaint.
“Temu has also attempted to impersonate the Shein brand and mislead consumers into believing that Temu is associated with that brand,” the lawsuit alleges.
Shein claims that links from the impostor pages led shoppers to download Temu’s app, under the impression that the two companies were related.
What does Temu say?
If Temu loses, it could be forced to scale back what has so far been a key marketing strategy. Shein seeks to prevent Temu from using her name and is seeking damages for sales that it can prove were caused by misleading advertisements. Temu has asked the court to dismiss the lawsuit.
“I think as Temu gets more publicity, there will be more and more lawsuits. Including IP, but probably not just IP. I’m sure there will be data issues as well,” said Rui Ma, a technology analyst at China and the United States.
A Temu.com spokesperson said the company “strongly and categorically rejects all allegations and vigorously defends its rights.”
Shein itself has faced lawsuits for copyright infringement.
Under the name Zoetop Business, she was sued by dozens of independent artists and retailers, including Nike, Deckers’ UGG brand, Luxottica Group’s Oakley eyewear, and online retailer Dolls Kill, alleging stolen designs.
PDD Holdings, which owns the popular Chinese app Pinduoduo, launched Temu in September as a new app for US shoppers to purchase shoes, jewelry, beauty accessories and home goods directly from Chinese merchants.
