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Temu files fresh US lawsuit against Shein accusing it of anticompetitive practices as fast-fashion competition heats up

  • Boston-based WhaleCo – which operates as Temu in the US – said Shein’s unlawful actions included ‘false imprisonment’ of vendors
  • The legal battles between Temu and Shein have escalated as both companies vie for e-commerce dominance in lucrative US market

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Temu has accused Shein of ‘mafia-style intimidation’ in a fresh US lawsuit. Photo: Shutterstock

Temu, which is owned by PDD Holdings, has launched a lawsuit in the US against fast-fashion rival Shein accusing it of illegal and anticompetitive practices as part of a “desperate plan” to sabotage its business, in a revamped legal battle between the warring e-commerce giants.

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In a Wednesday filing, Boston-based WhaleCo – which operates as Temu in the US – said Shein’s unlawful actions included “mafia-style intimidation” and “false imprisonment” of vendors, as well as “abuse of the copyright system” through sham copyright claims.

Temu previously sued Singapore-based Shein in July with similar allegations of antitrust violations, such as the coercion of vendors and manufacturers into exclusive-dealing agreements. Temu filed to drop those charges in October.

“Temu has discovered that Shein’s anticompetitive behaviour has not only persisted but intensified,” the latest lawsuit states, adding that “Shein’s persistent and increasingly aggressive use of anticompetitive conduct, coercion, and threatening behaviour necessitates this lawsuit.”

A spokesperson added in an email to the Post on Thursday that Shein’s actions were “too exaggerated”, leaving “no choice but to sue them”.

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Shein did not immediately respond to a request for comment.

Shein also called off a lawsuit against Temu in October, which alleged Temu had infringed on its trademarks and copyright, and impersonated its brand on social media and worked with influencers to disparage its business.

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