Online fast-fashion retailer SHEIN and its newer rival Temu are in a race to win shoppers' attention for their inexpensive China-made goods, APA reports citing Reuters.
The battle between them is playing out not only on social media but also in a U.S. court. The legal skirmish is important for U.S. consumers and rival retailers because it shows how online retailers with vendors in China need to navigate U.S. intellectual property protections.
In U.S. federal court, SHEIN has accused Temu of contracting social-media influencers to make "false and deceptive statements" against SHEIN in their promotions of Temu.com.
If Temu loses, Temu could be forced to curtail what so far has been a key marketing strategy. SHEIN seeks to block Temu from using SHEIN's name for marketing, and it wants damages from sales that SHEIN can show came through deceptive or infringing marketing. Temu has asked the court to dismiss the lawsuit.