Online retailer Temu sues rival Shein over alleged 'mafia-style intimidation'
The Guardian|December 15, 2023
The Chinese-owned online marketplace Temu has sued its rival Shein, alleging that the fast fashion company “bullied, intimidated, and even detained” suppliers in China as part of a campaign of “mafia-style intimidation”.
Callum Jones
Online retailer Temu sues rival Shein over alleged 'mafia-style intimidation'

Reigniting an acrimonious legal battle, Temu accused Shein of trying to “illegally interfere” with its business and going so far as to confiscate merchants’ phones during meetings to obtain access to confidential information.

Suppliers doing business with Temu have been threatened with penalties by Shein, WhaleCo Inc – which operates in the US as Temu – alleged in a 100-page filing to the US district court for the District of Columbia on Wednesday.

In a statement, Shein described the lawsuit as “without merit”, and vowed to defend itself. The company, one of the global leaders of fast-fashion e-commerce, is gearing up for an initial public offering, having reportedly filed confidential paperwork with the US securities regulators last month.

It comes just two months after the operators appeared to call a truce to their fierce legal disputes. Both applied to end legal cases against each other in October, requesting that they be dismissed “without prejudice” by the respective judges.

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