Chinese e-retailer Temu has filed a new lawsuit accusing rival Shein of violating U.S. antitrust law in its dealings with clothing manufacturers.
Temu’s lawsuit alleges that Shein “forces manufacturers to sign loyalty oaths certifying that they will not do business with Temu,” and that Shein impedes “the expansion of the ultrafast fashion market in the United States.”
The two companies are already embroiled in litigation in Chicago federal court, where Shein has alleged Temu worked with influencers to disparage Shein on social media. Temu's bid to dismiss that case is pending.
Shein said Temu’s lawsuit was “without merit and we will vigorously defend ourselves.”
Shein is a China-based company, which markets apparel at low prices in the US, Europe, and Asia. It has achieved a valuation of $66 billion. According to YipitData, Temu, which has positioned itself as a supplier with even lower prices than Shein, has seen significant growth, with its gross merchandise value rising from $3 million in September to $192 million in January.
Temu's new antitrust case adds to Shein's legal pressures. A group of designers sued the company in Los Angeles federal court last week, alleging "systemic and repeated" copyright infringement. Shein said in a statement reported by media organizations that it would defend itself.
Source: Reuters
