Lawsuit against Shein accuses company of racketeering

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to the retailer’s manufacturing facilities in China. Critics slammed the event as a thinly veiled attempt at goodwill and propaganda. A Shein spokesperson said of the backlash: “Their social media videos and commentary are authentic, and we respect and stand by each influencer’s perspective and voice on their experience. We look forward to continuing to provide more transparency around our on-demand business model and operations.

In this latest legal recourse, the designers accuse Shein of intentionally using a “decentralized structure” to redirect blame for design theft, obscuring the company’s role in infringement and violating the Racketeer Influenced and Corrupt Organizations Act. The complaint said that act could provide relief to the plaintiffs because the law is aimed at addressing the “misconduct of culpable individual cogs in an larger enterprise.

According to the complaint, one plaintiff, Perry, created art that appeared in identical form on Shein’s website. The lawsuit included side-by-side comparisons of alleged design theft including Perry’s work. When Perry reached out to Shein about the use of her art without approval, an employee of the company said the design was not produced by their company and was bought from a local vendor, the complaint said. She claimed to be offered a payment of $500.

“In these cases, Shein quickly apologizes, blames an unnamed third party for the misconduct,” the lawsuit said. “Shein made its offer as if it were a mom-and-pop operation rather than one of the richest enterprises in the world.”The goal of the lawsuit, plaintiff attorney David Erikson said in an email to NBC News, is to “reign in their bad behavior, and require them to stop copying U.S. designers.

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