Another round in the battle between Chinese rivals Shein and Temu: the latter is now suing the former, alleging abuse of power.
“Abuse of power”
“Shein abuses its dominance to make interested parties promise not to deal with us”, is the gist the complaint filed by Temu – itself not beyond reproach – with a Boston judge, Reuters reports. This causes higher prices and less choice for our customers, the orange marketplace claims.
Conversely, Shein has also filed a case against Temu, which – according to Shein – would incite influencers against its competitor. Separately, there are also cases against Shein by three US designers (for copyright infringement and general “mafia practices”) and investigations for possible forced labour and other harrowing working conditions.
Temu itself is not uncontroversial either: its extremely low prices raise questions about child labour and counterfeiting. Legally, though, it is important to note that none of these investigations has yet led to a conviction.