Temu Sues Shein for Breaching US Antitrust Law — Retail Bum

Chinese eTailer Temu is suing its rival Shein for violating U.S. antitrust laws in how it deals with clothing manufacturers.

The company has filed a lawsuit against Shein in the Boston Federal Court, arguing that it abuses its market position to coerce other manufacturers into not working with Temu.

[Shein] “forces manufacturers to sign loyalty oaths certifying that they will not do business with Temu,” the company said in its lawsuit.

Temu further alleges that Shein’s business practices have resulted in an environment where consumers have fewer choices and are forced to pay higher prices.

Shein has hampered “the expansion of the ultrafast fashion market in the United States,” Temu said in its lawsuit.

The lawsuit marks an escalation of the ongoing legal battle between the two firms. The two companies are already engaged in a legal battle in Chicago, where Shein has filed a lawsuit alleging that Temu works with influencers to disparage its image on social media channels.

It also adds to Shein’s legal troubles in the U.S., where the company is rumored to have filed to go public. The company’s IPO ambitions are facing a challenge from two dozen U.S. representatives, who have asked the SEC to verify that Shein’s business is not dependent on forced labor before listing itself in New York.

Last week, Shein was also slapped with a lawsuit by a group of designers, who accused the company of engaging in “systemic and repeated” copyright infringement, according to Reuters.

Originally published at https://retailbum.com on July 18, 2023.