National Business Wire (Dec 14) -- Temu, a cross-border e-commerce platform owned by Chinese e-commerce giant Pinduoduo, is suing Singapore-based online retail giant Shein again in the U.S.
Whaleco Inc., which operates Temu, filed a 100-page document Wednesday in the U.S. District Court for the District of Columbia alleging that Shein orchestrated a "multi-stage and multi-faceted" scheme to undermine its business in the U.S.
The complaint states that Shein sent tens of thousands of copyright takedown notices to Temu, forced ultra-fast-fashion suppliers to enter into exclusive-dealing agreements and used "mafia-style tactics" to coerce suppliers who worked with Temu.
Temu claimed that Shein poached several of its key marketing executives to replicate its games and promotional activities, including a woman who may have started working for Shein before formally quitting Temu.
The latest move by Temu, restarted a legal battle between the two companies. Since Temu entered the U.S. market last September, a war over market share between it and Shein hasn't died down.
The two companies had sued each other, but voluntarily withdrew legal actions against each other over copyright and antitrust issues at the end of October.
Both American and British courts have issued temporary restraining orders (TROs) in response to Shein's lawsuits against Temu, forcing Temu to stop infringing on Shein's rights.
Most of the suppliers to both online retailers are based in China, and a Temu spokesperson confirmed that the alleged violations involved Chinese suppliers.
The Temu representative said the latest move is due to Shein's escalating anticompetitive behavior. "Their actions are too exaggerated; we had no choice but to sue them."
"Temu has not only been copying Shein's private label products on a large scale and continuously engaging in unfair competition, but also distorting facts, playing trick of thief crying 'stop thief," said a Shein representative.
The representative concluded that Temu was "attempting to retaliate and discredit the company with malicious lawsuits," and said, "Shein will never give in to such despicable behavior and will vigorously respond to the lawsuit and defend its legal rights through legal means."
