Since December, Temu and Shien have both been sued and involved in an ongoing legal battle, facing lawsuits in the process.
This legal battle has confused consumers regarding the depth of things behind the scenes.
Their relentless pursuit of market dominance underscores the intensity of the legal fight.
Continue reading this article to discover if Temu is getting sued by Shein and the general idea of this lawsuit battle.
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Why Is Temu Getting Sued?
According to the claims made by Shein, Temu has been making their customers believe that they were the same brand.
They were also selling the products that were copyrighted by Shein (selling clothes with Shein’s logo).
This resulted in the word “Shein” popping up in search ads but, in actuality, would lead the customers to Temu’s website. But it doesn’t stop there.
Shein also claimed that Temu was operating three Twitter accounts using Shein as the username.
The accounts would instead have Temu’s link in the bio, which would transport the customers onto their website.
However, Temu is also retaliating with its own claims over Shein for violating supplier rights.
A class action lawsuit was recently filed against Temu, claiming they failed to protect the customer’s privacy.
Temu allegedly has an in-app browser that inserts JavaScript code to meticulously track every aspect of its users’ web activity.
Temu is accused of amassing substantial volumes of highly sensitive and private user information through this in-app browser.
This would mean that Temu could monitor their customers’ actions on third-party websites without their knowledge.
Why Is Shein Getting Sued?
According to Temu, Shein has been asking their manufacturers not to sell to Shien in the name of “Loyalty oaths.”
They have contacted their manufacturers to bind them into this agreement to achieve this goal legally.
According to the data submitted in the court, over 8,000 manufacturers are currently contract-bound to Shien.
They have also made counterclaims against Shein’s copyright claims, expressing that it was false.
In fact, they have told the court that Shein is attempting to take down certain Temu products that are sold at cheaper prices.
Hence, Temu alleges that Shein files unjustified copyright claims against suppliers, using them to penalize sellers active on both platforms.
Likewise, this results in Temu’s loss of merchandise.
Small business owners have voiced their grievances against Shein for a while, accusing the company of appropriating their designs.
However, the intricate copyright regulations in the fashion industry have posed challenges in pursuing legal action for imitative clothing designs.
Three independent designers initiated a lawsuit, claiming that Shein had sold exact replicas of their work.
This would infringe the Racketeer Influenced and Corrupt Organizations (RICO) Act designed initially to combat copyright infringement.
Hence, the lawsuit contends that Shein has amassed wealth through repeated individual infringements, forming an enduring pattern of racketeering.
Shein consistently engages in new copyright and trademark infringements daily.
The Bottom Line
Temu and Shein are entangled in a legal battle, with Shein accusing Temu of misleading consumers and copyright infringement.
Meanwhile, Temu alleges that Shein uses frivolous copyright claims to harm its suppliers, impacting their merchandise.
These ongoing lawsuits highlight a complex web of legal disputes in the fashion industry between two e-commerce giants.
And it shows no signs of stopping anytime soon as they get entangled with more lawsuits daily.
