Francesca Biagioli Shein and Temu find themselves at the center of a legal dispute which reminds us once again that behind low-cost fashion (fast fashion) lie enormous interests and several questionable practices
What lies beneath the alluring prices and trendy collections of Shein and Temu? We’ve discussed this topic multiple times. These fast fashion giants, which have captured millions of consumers worldwide, are embroiled in controversies of all kinds.
From the potential presence of toxic substances in their products to worker exploitation and the massive environmental impact, there are numerous red flags that should make us pause before succumbing to the temptation of “great deals” (which often aren’t) on these e-commerce platforms.
However, what you may not know is that there is no love lost between Shein and Temu. The two companies are locked in a legal battle that sheds light on the dark underpinnings of a business model built on highly questionable practices. What are we talking about? Counterfeit products, supplier manipulation, and even mafia-style threats and intimidation—at least, these are the mutual accusations.
The Shein-Temu feud
The feud between Shein and Temu has escalated further as Shein has filed a lawsuit against its rival for copyright infringement. The lawsuit, filed in a federal court in Washington, paints a complex picture of accusations and counterclaims.
Shein accuses Temu of building its success on counterfeiting and stealing trade secrets. At least one Temu employee allegedly stole “valuable trade secrets” from Shein related to the company’s best-selling products, which Temu then instructed sellers on its platform to offer as “counterfeit versions.”
The accusation is serious: Temu is alleged to exercise strict control over products and prices, pushing sellers to continue marketing counterfeit items even after violations have been detected.
Moreover, Temu is accused of “pretending” to be Shein through accounts on X (formerly Twitter), misleading customers from the “original” platform to Temu’s site.
As a result of these actions, Shein is seeking damages from Temu, as well as payment of legal fees.
Temu’s Response
Temu, for its part, has not remained silent and has responded harshly to the accusations. A spokesperson for the company stated, “The audacity of Shein is incredible,” emphasizing that Shein itself has been sued multiple times for similar practices. Indeed, other fashion brands or retailers have accused Shein of copyright infringement.
H&M filed a lawsuit against Shein last July, alleging that it had stolen the company’s intellectual property and sold counterfeit products. Dr. Martens, Ralph Lauren, Levi Strauss, Puma, and Adidas have made similar complaints, with all of these cases still ongoing.
Temu, in turn, has accused Shein of using “mafia-style” intimidation tactics against suppliers to hinder its growth in the United States.
Economic implications
This legal dispute between Shein and Temu isn’t just about intellectual property but, as you might imagine, also has significant economic implications. According to Temu, its entry into the U.S. market caused Shein’s stock value to drop by more than $30 billion, highlighting how the competition between these two giants has had a direct and tangible impact on the market.
Nevertheless, both companies, despite the legal controversies and accusations of unethical practices, continue to thrive in a global market hungry for low-cost fashion. This battle underscores the enormous stakes involved and how much we, as consumers, matter to these fast fashion behemoths, who are willing to go to any lengths to win our favor.
A Call for consumer reflection
As consumers, we should instead reflect on everything we now know about Shein, Temu, and similar companies, and seriously consider stopping our purchases from these giants. It may be time to choose more ethical and sustainable alternatives.
Temu’s reply
Following the publication of our article, Temu contacted us with the following statement:
“The audacity is incredible. SHEIN, buried under its own mountain of intellectual property lawsuits, has the nerve to fabricate accusations against others for the same misconduct for which it has been repeatedly sued.”
