Temu sues Shein for ‘mafia-style intimidation’

Temu has sued fast-fashion retailer Shein, alleging it has used aggressive and unlawful tactics to thwart competition, adding to the hostilities between the two Chinese-owned e-commerce sites as they fight to dominate the US bargain shopping market.

WhaleCo, Temu's US parent company, filed a lawsuit Wednesday in the US District Court of the District of Columbia alleging that Shein has used “mafia-style intimidation” against Temu and its suppliers. Temu claims that Shein workers have falsely imprisoned merchants who do business with them for “many hours” in their offices.

The lawsuit claims that Shein, a clothes and lifestyle retailer, improperly claimed copyright registrations for Temu's website products and subverted the US legal process to disrupt Temu's operations and destroy its valuable brand.

The action comes weeks after Shein filed for a US IPO, Reuters reports.

Temu and Shein are Chinese-owned e-commerce companies that sell cheap, largely Chinese-made goods. China-based PDD owns WhaleCo and Pinduoduo, a popular Chinese e-commerce powerhouse. Shein expanded into the US in 2019, while Temu launched in September 2022.