Temu stands accused by Shein of being "an unlawful enterprise built on counterfeiting, theft of trade secrets, infringement of intellectual property rights, and fraud." The complaint outlines an aggressive stance against Temu, stating that it "controls every aspect of its seller's activity," which includes dictating product listings and prices, and fostering infringement of others' rights. This leads to a complex legal battle reflecting deeper commercial animosities between rapidly growing online retailers.
The legal tension was further elevated by Shein's claim that Temu told influencers to make "false and deceptive statements" about Shein. Meanwhile, in December, Temu alleged that Shein resorted to tactics like "falsely imprisoning merchants doing business with Temu." These accusations highlight the severe competitive climate of the online retail sector, where accusations fly fast, and the line between rivalry and defamatory conduct blurs.
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