Fashion Retailer Shein Sued by Rival Temu With Antitrust Claims

Online fashion retailer Shein is facing a lawsuit from rival Temu, alleging it violated state and federal antitrust laws by cutting off access to key manufacturers.

“Shein knows that manufacturers need Shein’s volume and its access to the U.S. market and it is, therefore, able to coerce manufacturers into arrangements that force manufacturers not to do business with Temu,” according to Temu’s complaint filed July 14 with the US District Court for the District of Massachusetts. Temu is a subsidiary of PDD Holdings.

Since entering the US in 2017, Shein has become a dominant player in “ultra fast-fashion,” which offers ...