Temu accuses SHEIN of mafia-style intimidation of suppliers and files lawsuit in the United States - Hong Kong unwire.hk

2023-12-16 08:42:40

China’s online retail platforms have recently continued to expand into the international market and have gained certain support in many places with their low prices. However, the way these platforms operate has been questioned. Recently Temu filed a lawsuit in the United States accusing SHEIN of improperly interfering with suppliers.

Temu, an online retail platform from China, stated that fashion retail platform SHEIN has used illegal methods to prevent Temu from developing in the United States, including copyright infringement and intimidation of its suppliers in “triad methods.” A spokesperson for Temu revealed that SHEIN’s methods of putting pressure on its suppliers include confinement, taking away mobile phones, stealing accounts and business secrets, etc., threatening them to abandon the Temu platform.

This is not the first conflict between Temu and SHEIN. They had similar lawsuits before, but they settled in October. Both companies focus on low-cost products. They sign contracts directly with manufacturers to provide products for sale in overseas markets, and drive down the selling price to extremely low prices to enhance competitiveness. However, this kind of business method is often criticized. For example, SHEIN has repeatedly experienced plagiarism problems, and the manufacturers behind it are often accused of exploiting employees.

source:CNBC