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Temu, a Boston, Massachusetts-based online marketplace operated by the Chinese e-commerce firm PDD Holdings, has filed a lawsuit against its rival - SHEIN, the online fast fashion retailer headquartered in Singapore.
According to Sky News, Temu sued SHEIN for alleged "Mafia-style" intimidation, claiming that it has threatened merchants as part of its supposed desperate scheme to drive away competition from Temu, which it sees as a major rival in the United States.
Renewed Battle in Court and Allegations
The new lawsuit filed against SHEIN just reignited their bitter conflict, and it is even deeper this time. In its suit, Temu said the latter bullied suppliers or vendors after launching a campaign to prevent rivalry.
Moreover, it was claimed in the lawsuit that was filed in Washington DC this week that SHEIN requested the presence of Chinese vendors that it thinks were working with Temu. When they were already in the office, it was alleged that the individuals were "falsely imprisoned" for hours.
The merchants' mobile phones were also seized while being detained. It was also purported that SHEIN threatened them with penalties for simply engaging in business with Temu. Lastly, the Singapore-based fashion retailer was accused of misapplying intellectual property (IP) laws and poaching, as SHEIN was said to have sought out Temu's key advertising and marketing employees to apply for a job at their company.
"We sued Shein because recently their actions have escalated," the spokesman of Temu explained. "They began to illegally detain merchants, forcibly asking for their phones, stealing our merchant accounts and passwords, stealing our business secrets, and simultaneously forcing merchants to leave our platform."
SHEIN's Response to Temu's Claims
After the lawsuit filing, The Guardian reported that SHEIN issued a short statement in response. The company said that the suit was "without merit" and declared it would defend itself.
It was noted that the latest feud comes just two months after the companies appeared to have called a truce after intense legal disputes. In fact, in October, both SHEIN and Temu reportedly applied to end all the cases against each other by requesting that the courts dismiss them.
Photo by: Temu Press Room
