The Gen Z Ultra-Fast Fashion Battle Continues… Shein v Temu!

As you may be aware, Shein and Temu are two Chinese e-commerce companies – their adverts pop up all over social media (but that’s another legal issue…)!  And there is no love lost between them. Since December 2022, Shein and Temu have been embroiled in a variety of commercial and competition disputes including:

1. Shein accusing Temu of misleading consumers into thinking that they were the same brand – allegedly when consumers clicked on an ad displaying the word “Shein” it would lead them to Temu’s website.

2. Temu accused Shein of violating US antitrust law as Shein allegedly asked its manufacturers to sign exclusivity agreements and “loyalty oaths” preventing them from also working with Temu.

3. It is also claimed that Temu is behind three imposter Twitter (now X) accounts using names like “Shein_USA” which asks customers to support the new page whilst posting links to Temu’s app and website.

Allegations of copyright and passing off 

The rivalry between the companies continues and Shein has reportedly commenced legal proceedings in the London High Court against Temu in respect of alleged copyright infringement and passing off. In particular, it is alleged that Temu has used thousands of Shein’s product images from its website and passed them off as its own products on its website. Steps may be taken by Shein to secure an injunction against Temu to stop it using the images, alongside it pursuing a claim for damages.

Intellectual property issues like this are rife within the fashion and retail sector and shows how competitive this sector is. For example, Swedish fashion brand, Hennes & Mauritz (“H&M”), also recently accused Shein of infringing its copyright and trademark by copying its designs in a claim issued in the Hong Kong High Court.

Partner, Adele Whaley, shares her experiences of some recent cases she has been working on with similar issues:

“We recently advised a client in the electronic components industry. We drafted cease and desist letters to various Chinese companies who had been using our client’s name, logo and images on fake websites which had been set up to try and entice business away from our client. Not only did we work with the client to take legal action to stop this activity and have the images taken down, but we also worked with the client at a very commercial level to limit the impact of these fake websites on its relationships with its suppliers – its reputation and brand were very much at stake”.

Comment

The unauthorised use of imagery, logos and name is a common issue in the retail sector, and it is really important that businesses are alive to these issues – not least to protect their brand and reputation, but also to protect potentially iconic products of significant value; such as the Colin The Caterpillar Cake battle which we have previously written about.

Our Disputes and Corporate & Commercial teams are highly experienced in advising businesses on intellectual property issues including copyright infringement and passing off. If you would like advice about protecting your intellectual property, please get in touch.