Shein Accused of Using Mafia-like Methods.
Reuters news agency reports that the e-commerce service Temu is now suing its competitor Shein in a U.S. court. This is because Temu believes that Shein has used “mafia-like” methods to prevent suppliers from collaborating with Temu.
According to Temu, Shein allegedly detained suppliers for several hours, seized their mobile phones and computers, and threatened them with fines to prevent them from collaborating with Temu. A spokesperson for Temu told Reuters:
We sued Shein because recently their actions have escalated. They began to illegally detain merchants, forcibly asking for their phones, stealing our merchant accounts and passwords, stealing our business secrets, and simultaneously forcing merchants to leave our platform
Both Temu and Shein have their roots in China, and according to Temu, it is Chinese subcontractors that Shein is trying to scare away from collaborating with Temu. Both Temu and Shein have previously sued each other in U.S. courts for various antitrust violations they claim to have suffered from each other.