China-tied e-commerce rivals Shein and Temu call a truce in US court battle

The companies have filed joint declarations to US courts, requesting two legal cases be dismissed by judges

Shein had accused Temu of unfair business practices, while Temu alleged that Shein bullied suppliers and violated antitrust rules

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Temu and Shein are calling a truce in their legal battle in the US, according to court documents. Photo: AP Photo

Published: 2:17pm, 27 Oct 2023

Fierce rivals Shein and PDD Holdings-owned Temu have applied to end their legal fights with each other in the US, documents show, marking a truce even as a global market share battle between the low-price online platforms heats up.

Joint declarations were filed to courts in Chicago and Boston by lawyers representing the companies and their subsidiaries, requesting that two legal cases be dismissed “without prejudice” by their judges.

The filings did not contain details on why they had decided to drop their complaints or whether any settlement had been made. Neither firm immediately responded to a request for comment on the filings on Friday.

Shein’s lawsuit against Temu, filed last December in the US District Court for the Northern District of Illinois, alleged that Temu told social media influencers to make disparaging remarks about the fast-fashion retailer, and tricked customers into downloading the Temu app using “impostor” social media accounts.

In July, Temu filed its own lawsuit in Boston federal court, accusing Shein of violating US antitrust law in its dealings with clothing manufacturers.

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