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Fast-Fashion Retailer Shein Sued by Rival Temu for 'Mafia-Style Intimidation'

Temu Accuses Shein of Leveraging Market Dominance to Restrict Competition Amid Plans for U.S. IPO

  • Shein, a fast-fashion retailer, is being sued by rival company Temu for allegedly using 'mafia-style intimidation' tactics to maintain its competitive edge in the market.
  • The lawsuit, filed in Washington, D.C., accuses Shein of leveraging its dominance in the ultra-fast fashion market to prevent Temu from accessing suppliers.
  • Temu alleges that Shein uses tactics such as exclusive dealing agreements, intimidation of suppliers, and anticompetitive pricing floor requirements.
  • Both companies, which have ties to China, have been under scrutiny from U.S. lawmakers for potential violations of Uyghur forced labor laws.
  • This legal battle comes at a crucial time for Shein, which recently filed to go public in the U.S.
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