Cheap China Fashion Firms Temu, Shein Battle In U.S.

Temu has sued Shein in the US, charging its rival with violating antitrust laws as it monopolizes suppliers and engaging in illegal behavior.

Photo Insert: In its suit, Temu claims that Shein has “engaged in a campaign of threats, intimidation, false assertions of infringement, and attempts to impose baseless punitive fines” on apparel makers thought to be working with Temu.

The lawsuit, filed Friday in Massachusetts federal court, escalates the legal battle the fast fashion upstarts have been embroiled in for months, Michelle Toh wrote in an analysis for CNN.

It follows a complaint from Shein, which sued Temu in December for mobilizing social media influencers to disparage Shein online.

In its suit, Temu claims that Shein has “engaged in a campaign of threats, intimidation, false assertions of infringement, and attempts to impose baseless punitive fines” on apparel makers thought to be working with Temu.

Shein has also “forced” exclusivity deals on clothing manufacturers to prevent them from working with Temu, the complaint states.

Both companies originated in China and made their names as online retailers specializing in a supersonic version of fast fashion, defined as the rapid design and production of cheap goods that respond to fleeting trends.

In some ways, they’re beating industry stalwarts like Zara and H&M at their own game, by making items quicker and being digitally savvy with customers.

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