SHEIN vs. Temu: What Their Lawsuit Reveals About Horrific Ultra-Fast Fashion Methods

While the Chinese ultra-fast fashion giant SHEIN is starting to make itself known in France, another is trying to establish itself on Western markets: Temu. In the United States, in particular, their competition is intensifying, since the former filed a lawsuit against the latter in December 2022, which it accuses of “intentionally and flagrantly infringing on its exclusive and valuable trademark rights and copyright Here Temu responds by filing a complaint against SHEIN of which he accuses ” do not choose to compete on substance by offering better prices, terms, service or quality “but for setting up a” enforced exclusivity system, threats, intimidation and direct fines “. Or a behavior contrary to fair competition and within the limits of applicable law “, reports the specialized newspaper The fashion law.

SHEIN accused by Temu of abusing its monopoly position and using extralegal means to suffocate its competitor

According to the filing, SHEIN clearly dominates the super fast fashion niche in the US with a 75% market share in 2022. This is the year Temu enters the US market, which wanted to cut prices even more than the its rival to establish itself, quickly becoming the most downloaded fashion shopping app on the App Store. What displeased SHEIN who responded with threats and intimidation, in order to hinder its competitor’s supply chain and prevent it from being more competitive.

As well as summary The fashion lawTemu details the mastodon’s four strategies thus:

1. Forcing manufacturers to enter into membership agreements that effectively create exclusive supplier relationships with it and threatening manufacturers with onerous fines and penalties if they supply products to Temu.
2. Requiring manufacturers to sign loyalty oaths stating they won’t do business with Temu, but doesn’t force them to worry about other potential competitors.
3. Imposing extrajudicial fines on disobedient manufacturers if they supply products to Temu.
4. Submitting numerous false copyright infringement notices to Temu in order to disrupt sales of products offered for sale on Temu.

Regarding the latter point, more than 10,000 products have already been removed from Temu’s catalog due to SHEIN’s scheme, between October 2022 and today. The giant has already signed exclusive contracts with almost 80% of Chinese suppliers capable of producing at the pace of ultra-fast fashion. Temu therefore relies on anti-monopoly and consumer protection laws to sue SHEIN.

The hospital that doesn’t care about charity, but makes it ultra fast fashion

But let’s not even see it as a fight between David and Goliath, as Temu remains a major player in an ultra-fast manner, therefore harmful to humans and the rest of the planet. This judicial case sheds light above all on the means, sometimes extralegal, that these industrial giants are able to put in place to achieve their ends. When SHEIN files a complaint against its competitor, it is therefore the hospital that gives a damn about the charity. And between plague and cholera, we prefer to go and dress with what we already have at home.

Note that in parallel, another lawsuit targets SHEIN (like every day, you’ll tell me) since July 11, 2023 for its years of plagiarism and counterfeiting, carried by dozens of brands and artists across the US, as reported by a other specialized media, The good goods. But even if the company faces hefty fines and penalties, its colossal financial resources can easily absorb any losses. This giant is far from having feet of clay.

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