Home Business News Quick-fashion retailer Temu sues rival Shein over US antitrust legislation By Reuters

Quick-fashion retailer Temu sues rival Shein over US antitrust legislation By Reuters

Quick-fashion retailer Temu sues rival Shein over US antitrust legislation By Reuters



© Reuters. FILE PHOTO: A Shein emblem is pictured on the firm’s workplace within the central enterprise district of Singapore, October 18, 2022. REUTERS/Chen Lin/File Photograph


By Mike Scarcella

(Reuters) – Chinese language e-retailer Temu has filed a brand new lawsuit accusing rival Shein of violating U.S. antitrust legislation in its dealings with clothes producers, escalating a authorized conflict for dominance within the fast-fashion market.

Temu, represented by distinguished U.S. legislation agency Boies Schiller Flexner, filed the brand new case on Friday in Boston federal courtroom.

The 2 corporations are already embroiled in litigation in Chicago federal courtroom, the place Shein has alleged Temu labored with influencers to disparage Shein on social media. Temu’s bid to dismiss that case is pending.

Temu’s new lawsuit alleges that Shein, which entered the U.S. market in 2017 and has a $66 billion valuation, has abused its market energy in attempting to coerce producers to shun Temu.

Temu’s criticism alleged Shein “forces producers to signal loyalty oaths certifying that they won’t do enterprise with Temu.”

Shein’s enterprise practices have led to increased costs and fewer selection for customers, Temu stated. Shein has additionally impeded “the enlargement of the ultrafast vogue market in the US,” the lawsuit asserts.

A spokesperson for Shein on Monday stated Temu’s lawsuit was “with out benefit and we will vigorously defend ourselves.”

The case is the most recent improvement in a feud between the fast-fashion opponents.

Temu’s new antitrust case provides to Shein’s authorized pressures. A gaggle of designers sued the corporate in Los Angeles federal courtroom final week, alleging “systemic and repeated” copyright infringement. Shein stated in a press release reported by media organizations that it could defend itself.

Shein, based in China, markets attire for low costs, together with footwear offered for lower than $20 and attire priced at $10. The corporate produces clothes in China that’s offered on-line within the U.S., Europe and Asia.

Temu markets itself as providing decrease costs than Shein. Information agency YipitData stated Temu’s gross merchandise worth rose from $3 million in September to $192 million in January.

Temu’s Boies Schiller attorneys didn’t instantly reply to a request for touch upon Monday.

The lawsuit, assigned to U.S. District Decide Denise Casper, seeks unspecified triple damages.

The case is Whaleco Inc v Shein US Providers LLC et al, U.S. District Courtroom for the District of Massachusetts, No. 1:23-cv-11596.

For plaintiff: Philip Korologos and James Denvir of Boies Schiller Flexner

For defendant: No look but

Learn extra:

Shein, Temu in fierce struggle over US marketplace for $10 attire



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