Chinese language e-retailer Temu has filed a brand new lawsuit accusing rival Shein of violating US antitrust legislation in its dealings with clothes producers, escalating a authorized conflict for dominance within the fast-fashion market.
Temu, represented by outstanding US legislation agency Boies Schiller Flexner, filed the brand new case on Friday in Boston federal courtroom.
The 2 firms 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 US market in 2017 and has a $66 billion valuation, has abused its market energy in making an attempt 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 larger costs and fewer selections for shoppers, Temu stated. Shein has additionally impeded “the growth of the ultrafast style market in the US,” the lawsuit asserts.
A spokesperson for Shein on Monday stated Temu’s lawsuit was “with out advantage, and we’ll vigorously defend ourselves.”
The case is the newest improvement in a feud between the fast-fashion rivals.
Temu’s new antitrust case provides to Shein’s authorized pressures. A bunch 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 organisations that it will 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 US, 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 US District Choose Denise Casper, seeks unspecified triple damages.
By Mike Scarcella; Editor Josie Kao
Be taught extra:
US Lawmakers Discover ‘Extraordinarily Excessive Threat’ That Merchandise Bought on Temu Are Linked to Compelled Labour
A congressional report says the Chinese language-owned e-commerce enterprise has inadequate programs in place to forestall items made by compelled labour being offered on its platform.