© Reuters. FILE PHOTO: A Shein logo is pictured at the company’s office in Singapore’s central business district, Oct. 18, 2022. REUTERS/Chen Lin/File Photo
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by Mike Scarcella
(Reuters) – Chinese e-retailer Temu has filed a new lawsuit accusing rival Shein of violating US antitrust law in its dealings with apparel manufacturers, escalating a legal battle for control of the fast-fashion market.
Temu, represented by the prominent US law firm Boies Schiller Flexner, filed the new case Friday in Boston federal court.
The two companies are already embroiled in lawsuits in federal court in Chicago, with Sheen alleging that Timo worked with influencers to belittle Sheen on social media. Temu’s attempt to dismiss that case is pending.
Temu’s new lawsuit alleges that Shein, which entered the US market in 2017 and has a valuation of $66 billion, has abused its market power to try to force manufacturers to shun Temu.
Temu’s complaint alleged that Shein “forces manufacturers to sign an oath of loyalty certifying that they will not do business with Temu.”
Timo said Shein’s business practices have led to higher prices and fewer choices for consumers. The lawsuit asserts that Shein also impeded the “high-speed expansion of the fashion market in the United States.”
A spokesperson for Sheen said Monday that the lawsuit filed by Teemo is “baseless and we will vigorously defend ourselves.”
The case is the latest development in a dispute between the fast-fashion rivals.
Temu’s new antitrust case adds to Shin’s legal pressure. A group of designers sued the company in Los Angeles federal court last week, alleging “systematic and repeated” copyright infringement. In a statement reported to the media, Shin said she would defend herself.
Founded in China, Shein markets low-priced clothing, including shoes that retail for under $20 and dresses for $10. The company produces clothing in China that is sold online in the United States, Europe and Asia.
Temu markets itself as offering lower prices than Shein. Data firm YipitData said the total value of Temu’s goods rose from $3 million in September to $192 million in January.
Attorneys for Temu Boies Schiller did not immediately respond to a request for comment Monday.
The suit, which is assigned to US District Judge Dennis Casper, is seeking unspecified triple damages.
The case is Whaleco Inc v. Shein US Services LLC and Others, US District Court for the District of Massachusetts No. 1: 23-cv-11596.
For the plaintiff: Philip Korologos and James Denver of Boise, Schiller Flexner
For the defendant: He has not yet appeared
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Shein, Temu are in a fierce battle over the US market for $10 dresses