Shein intimidation lawsuit overview:
- Who: WhaleCo Inc. filed a lawsuit against Shein Technology LLC and Roadget Business Pte. Ltd.
- Why: Temu claims rival online retailer and fellow Chinese-owned Shein uses intimidation tactics and abuses the US legal system in an alleged attempt to sabotage its business.
- Where: The lawsuit was filed in District of Columbia federal court.
Online marketplace Temu claims online fashion retailer Shein uses “mafia-style intimidation” to illegally interfere with its business, infringe on its intellectual property rights and abuse the US legal system.
Temu, in a suit filed in a Washington, D.C. federal court last month, argues fellow China-based Shein has been attempting to sabotage its business as part of a “desperate plan to eliminate the competitive threat posed by Temu” after its entrance into the US market reportedly dropped their valuation by more than $30 billion.
“Ever since Temu’s U.S. launch in September 2022, the company has been seen by Shein as its greatest threat—and therefore the target of malicious and unlawful conduct intended to thwart Temu’s success,” the Shein lawsuit states.
Temu claims Shein has gone so far as to falsely imprison and threaten merchants that are doing business with Temu, including by locking their representatives in Shein offices, confiscating their electronic devices and obtaining access to proprietary Temu information.
Shein subverting US legal process in attempt to disrupt Temu’s operations, damage its brand, says suit
Temu argues Shein’s alleged plan includes manipulating the U.S. Copyright Office, misusing the Digital Millennium Copyright Act (DMCA), unlawfully copying Temu’s IP and subverting the US legal process to allegedly disrupt Temu’s operations and damage its brand.
Shein has sent around 33,000 takedown requests under the DMCA from between January and October of last year, targeting promotional photographs appearing on Temu’s site, the lawsuit alleges.
“Shein’s recent and ongoing manipulation of DMCA notice procedures to disrupt Temu’s marketplace is founded on Shein’s improper seizures of the suppliers’ IP and Shein’s false submissions to the U.S. Copyright Office,” the Shein lawsuit states.
Temu brought a total of 18 claims against Shein, including alleged violations of copyright laws, antitrust laws, trade secret laws in addition to trade dress infringement under Section 43(a) of the Lanham Act.
Shein previously filed a lawsuit against Temu in September over claims the company improperly used thousands of its copyrighted images as promotional photos on its website. The complaint was one of several that has been filed against Temu in recent months.
Do you believe Shein has been using intimidation tactics against Temu? Let us know in the comments.
Temu is represented by J. Mark Gidley, Anna Naydonov, Michael J. Songer, Jack E. Pace III, Michael Hamburger, Holly Tao and Rosie Norwood-Kelly of White & Case LLP.
The Shein intimidation lawsuit is WhaleCo Inc. v. Shein Technology LLC, et al., Case No. 1:23-cv-03706, in the U.S. District Court for the District of Columbia.
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5 thoughts onTemu hits Shein with lawsuit alleging intimidation, abuse of legal system
Please add me
NOW, I understand why I was getting emails from Shein
I have purchased some items from Temu, I NEVER signed up for SHEIN
PLEASE ADD ME TO THE LIST
Add me please
I have been receiving several emails from Shein to whom I never signed up for, I do however go onto the Temu website frequently and I often wondered where Shein came from.
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