Temu is suing its rival Shein, alleging “mafia-style intimidation”.  Oooh, it’s the battle of the Chinese mega-retailers.

So the tea is smoking hot!

If you don’t know about Shein and Temu, you’ve been living under a rock for the past two years.

Shein is an e-commerce platform that offers trendy clothes and lifestyle goods for people on a tight budget.

Now they’re being sued by another low-cost online Chinese retailer, Temu.

According to the lawsuit, Temu is alleging that Shein used aggressive and unlawful tactics to thwart competition.

The lawsuit was filed in the US District Court of the District of Columbia by Temu’s US-based parent company, WhaleCo.  It alleges that Shein has engaged in “mafia-style intimidation” tactics against Temu and its suppliers. 

Temu alleges that Shein employees have gone so far as to falsely imprison merchants who do business with Temu in Shein’s offices for “many hours.”

The lawsuit further claims that Shein engaged in the “subversion of the US legal process to disrupt Temu’s operations and damage Temu’s valuable brand.”  This includes illegally claiming copyright registrations for products sold on Temu’s website.

However, in its response, Shein says, “they believe the lawsuit is without merit and they’ll vigorously defend themselves.”

Now it’s not the first time Shein has come face to face with legal battles. 

In July of 2023, H&M filed a lawsuit against Shein for copyright infringement.

And three graphic designers sued the Chinese fast-fashion giant over what they allege is “egregious” copyright infringement and racketeering.

Shein no doubt denied the allegations. 

But despite all the drama, Shein is looking ahead to its IPO in the US.  The company is valued at US$66 billion and could start trading as early as this year. 

And that’s the bottom line.