Shein, the online fast-fashion giant, has filed another lawsuit against its rival, Temu, alleging copyright infringement. This is the latest development in the ongoing battle between the two Chinese-linked marketplaces.
In the lawsuit filed on Monday, Shein—which was founded in China but is now based in Singapore—accuses Temu, owned by PDD Holdings, of stealing its designs, impersonating Shein on X (formerly Twitter), and incorporating Shein trademarks into its own designs in what Shein calls a “coordinated scheme.” This lawsuit comes after Shein previously sued Temu in 2023 for intimidation and misleading customers.
“Temu pretends to be a legitimate e-commerce ‘marketplace’ where independent sellers can offer their products for sale,” Shein’s parent company, Roadget Business, stated in its lawsuit filed against Temu operators in the U.S. District Court for the District of Columbia on Monday. “But the facts uncovered to date—and those expected to be uncovered in discovery—demonstrate otherwise.”
In a prepared statement, a Temu spokesperson responded to the suit by stating that Shein’s “audacity is unbelievable” and that the company “has the nerve to fabricate accusations against others for the very misconduct they’re repeatedly sued for.”
TIME has reached out to Temu for comment regarding the lawsuit.
Both Temu and Shein are among the growing that do business in the U.S., sending almost a to American consumers, frequently , and racking up every year. Both companies typically ship packages straight from , allowing American consumers to buy fast fashion, electronics and other products for incredibly low prices.
This is not the first lawsuit Temu has faced regarding this type of infringement. Earlier this year, dozens of small business owners who said their designs have appeared on Temu without their consent.
However, while Shein accuses Temu of these infringements, it has also faced similar accusations. Last year, three independent designers for selling “exact copies” of their work, mirroring the accusations they recently made against Temu.
This is not the only legal battle between the two rivals. In 2023, Shein accused Temu of misleading consumers and engaging in deceptive business practices, including creating fake social media accounts. in Massachusetts, accusing them of violating U.S. antitrust laws by allegedly preventing creators and manufacturers from working with Temu and punishing those who did.
Both suits by the companies were dropped in October, but Shein filed another suit against Temu in December, this time alleging
Earlier this year, Temu after their multiple Super Bowl ads, which flaunted their alluringly low prices in multiple ad spots during the game, encouraged customers to “shop like a billionaire.”
Despite boasting about these cheap consumer goods, Temu’s shows 2,704 total complaints in the last 3 years. Both companies have also been criticized for and connections to the Chinese government.
The success and subsequent complaints from small business owners regarding Shein and Temu have caught the attention of legislators, with that aims to reduce the trading advantages Temu and Shein have: a trade rule known as de minimis, which allows the companies to ship packages without paying duty and certain taxes as long as shipments are under the value of $800.
In Shein’s current suit, they argue that Temu is “armed with stolen information” and directed its sellers to copy Shein’s best-selling Shein products and sell knock-off versions on Temu’s website and mobile application.
