It is Temu vs. Shein again!
These two fashion stores have been rivals for many years, and there have been a notable number of lawsuits between them. Now, Shein has sued Temu again for copyright infringement, fraud, and poaching of its employees.
What does Temu have to say in response, and who will win this round?
Why Is Shein Suing Temu Again?
Shein and Temu are fast-fashion giants with Chinese-linked affiliations. Since they are in the same market, the two companies have gone head-to-head several times for many reasons. The most recent shows that Shein filed a lawsuit against Temu on August 19th, in a federal court in Washington, D.C., accusing Temu of copyright violations and poaching.
This lawsuit comes because Shein also faces similar allegations in court from many brands, including H&M and Levi Strauss. The lawsuit gives a clear insight into Shein’s accusations against Temu.
Shein alleges that the company owned by PDD Holdings is simply disguising itself as a legitimate online marketplace while allowing its sellers to steal designs and other branded ideas. This shows serious copyright violations. According to the lawsuit, Temu does not allow its sellers to remove the stolen designs from their platforms even after admitting infringement.
Temu Sells at a Loss
The lawsuit also claims that Temu loses money on every transaction made on the website because of its extremely low pricing and heavily subsidized items. Therefore, it makes its profits in a completely different and unethical way.
The lawsuit explained, “Only by encouraging its sellers to infringe the intellectual property rights of others and sell counterfeit or sub-standard goods can Temu hope to minimize the massive losses it is subsidizing.”
As expected, Temu responded to Shein’s lawsuit almost immediately, saying that the fellow fashion brand’s audacity was “unbelievable” to the company. This is because of the several current and impending lawsuits that Shein is battling or facing soon.
A spokesperson for the brand said, “SHEIN, buried under its mountain of IP lawsuits, has the nerve to fabricate accusations against others for the very misconduct they’re repeatedly sued for.”
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Does Temu Poach From Shein?
Over the past few years, Shein and Temu have taken each other to court over several scandals and allegations. The two fashion brands were still in the city last year, arguing over copyright violations and asserting that Temu was using “mafia-style intimidation of suppliers” to bully people into exclusivity agreements.
To further make its case, Shein’s lawsuit accuses Temu of directing its sellers to copy items from Shein’s website and sell similar knockoffs on the company’s app and website. Shein’s 80-page lawsuit also accuses Temu of poaching.
It claims that at least one of Temu’s employees stole “valuable trade secrets” from the brand and handed them to Temu. This has allegedly helped Temu identify Shein’s best sellers and internal pricing information, helping its competitor thrive off its ideas.
The suit also accused Temu of poaching employees, resources, and suppliers from Shein and paying social media influencers for better reviews for similar Shein products.
What Is the Scandal Behind Shein?
Shein is suing Temu right now, but that does not mean that the fashion brand does not have skeletons in its closet. For a long time, Shein has been involved in several controversies over its alleged unethical business practices.
These include using cheap and dangerous products for clothing items, employing forced and underaged workers, violating labor laws, and stealing designs from upcoming brands worldwide.
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Who Is Shein’s Biggest Competitor?
As a fast-fashion brand, Shein has many competitors around the globe. However, its biggest competitor is often cited as Temu. Fashion brands usually go head-to-head with similar products at highly competitive prices. Both companies are among the fastest-growing fashion retailers in America and are famous for their affordability.
Temu and Shein often compete in the same market. Temu is an ultra-cheap brand, making it an excellent competitor for Shein.
Is It Safe to Order From Temu?
Since Temu is an ultra-cheap brand, many people worry about ordering from the store. It is a legitimate online shopping company, and it is safe to order from there. However, some customers have complained that their items never arrived or were much different than described on arrival.
In addition, Temu does not have accreditation from the Better Business Bureau (BBB), which most major companies and e-commerce sites usually do. Furthermore, Temu and Shein are similar because they operate in the same business market, and their businesses are questionable. Both companies have been accused of stealing designs from smaller brands for several years.
A June 2023 U.S. congressional report noted an “extremely high risk” of Temu’s products being linked to forced labor. The same goes for Shein, proving that none of them is more ethical than the other due to their alleged questionable practices.
Temu vs. Shein Reviews and Shipping
Since the two brands often sell highly similar products, it is very common to see people comparing both everywhere. Many influencers buy the same products on both platforms and compare which site has the better product.
Most of the time, Temu’s prices are much lower than Shein’s since it is an ultra-cheap brand, and the lawsuit claims that the brand loses money this way. Public opinion sometimes varies regarding quality reviews. For some items, some people prefer Temu’s quality, while others prefer Shein’s quality and alternative designs.
Shipping is another notable category in which these two brands are constantly compared. However, many argue that Temu has faster, cheaper, and more reliable shipping than Shein. Both companies offer free shipping as a form of discount shopping after spending a certain amount, but Temu’s delivery is usually faster. Many reviews claim that Shein’s free shipping option is unreliable, causing customers to opt for a paid delivery service even though they qualify for free shipping.
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