The complaint filed in a Washington federal court this week alleges that Temu, which has grown in popularity in the U.S, has subsidized its low prices by encouraging sellers to offer counterfeited items, stolen designs and sub-standard products.
Asked for comment about the new lawsuit, a Temu spokesperson said in a prepared statement that Shein's “audacity is unbelievable.” The new lawsuit against Temu represents an escalation of the ongoing feud between the two companies, which have sued each other in U.S. courts before. Shein, which was founded in China but is now based in Singapore, accused Temu in court of engaging in deceptive business practices and misleading consumers by creating impostor accounts on social media that used Shein's name but directed people to Temu's platform.
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