Updated 22.01 | Published 21.53
Fast fashion companies Temu and Shein are in big trouble.
Shein is accused of carrying out “mafia-like practices” against Temu’s salesmen.
– They want to pressure Temu for purely competitive reasons, says Michael Falk, PR manager for Temu in Sweden.
The two companies of Chinese origin are far from friends. After dropping previous lawsuits against each other, now is the time again.
PDD Holdings, American Temu, accuses competitor Shein of having forced traders to break cooperation with Temu through “mafia-like methods”.
It is about two parts. Partly about Shein allegedly seizing Temu sellers’ electronic devices and thereby gaining access to confidential company information.
In addition, Temu believes that Shein allegedly kept salesmen who worked for Temu locked in Shein’s office for several hours.
– There are various manufacturers based in China. There, in the worst case, Shein has imprisoned them and tried to get hold of various forms of business information, says Michael Falk, who works with Temus PR in Sweden.
“Has escalated”
The other allegations involve Shein allegedly filing several lawsuits accusing Temu of not complying with the US Bill of Rights. These moods, according to Temu, are invented to destroy.
– Reports are submitted that Temu allegedly violated the rights legislation. The idea is that Temu will be forced to work and spend time on the lawsuits instead, says Michael Falk.
For this, the Chinese company Shein has now been sued in an American court.
– We are suing Shein because their behavior has escalated, says a spokesperson for Temu Reuters.
“Coercive methods”
Both discount giants have hit big in the US and Europe in recent years. They have attracted customers by having extremely low prices. But lately, success has turned for Shein, whose valuation has fallen in the US market.
That is why the quarrel has escalated, Temu believes.
– It is partly a competitor and it has gone very well in Sweden, among other places, says Michael Falk, PR manager for Temu in Sweden.
In July, Temu filed a lawsuit regarding Shein’s exclusivity agreements with suppliers and their “coercive methods” to enforce those agreements.
But in October, Temu withdrew the suit and Shein as well – this without reservation towards each other.
However, what happens with the new lawsuit against Shein remains to be seen.