Fast-fashion feud: Temu sues Chinese rival Shein in US for bullying suppliers
- PDD-owned Temu has filed a lawsuit in a US court, alleging that Shein has threatened and intimidated manufacturers into exclusivity agreements
- The global marketplace has become increasingly important as China’s economic growth and retail sales slow down
Two of China’s fastest-growing online retail platforms are engaged in an unusual legal battle in the United States, as their bare-knuckle rivalry spills over to the courtroom in one of their biggest and most lucrative markets.
Temu, a unit of Shanghai-based PDD Holdings, sued its competitor Shein, founded in Nanjing and headquartered in Singapore, alleging antitrust and consumer rights violations, according to a complaint filed on July 14 at the District Court of Massachusetts. Temu seeks unspecified monetary damages.
“Shein has engaged in a campaign of threats, intimidation, false assertions of infringement, and attempts to impose baseless punitive fines,” Temu wrote.
“For a long time, we have exercised significant restraint and refrained from pursuing legal actions. However, Shein’s escalating attacks leave us no choice but to take legal measures to defend our rights,” Temu said in a separate statement.
Shein said the lawsuit was “without merit” and vowed to “vigorously defend” itself, according to an emailed statement on Wednesday.
