SCD: ‘Mafia-style’: A look at Temu’s latest allegations that Shein has chokehold on supply chain

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SUPPLY CHAIN DIVE reports:

Last week marked the second time this year China-based fast fashion house Temu sued rival Shein over allegations that the latter has tried to monopolize the industry’s supply chain.

After dropping a civil antitrust lawsuit against Shein it filed earlier this year, Temu sued Shein again under U.S. antitrust law last week, alleging this time that “Temu has discovered that Shein’s anticompetitive behavior has not only persisted but intensified.” This time, Temu accused Shein of “mafia-style” tactics, including intimidation of merchants in the space.

The words “supplier” or “suppliers” comes up more than 350 times in the lawsuit as it details allegations that Shein has tried to lock up the supplier base for itself and intimidate those who work with Temu as well — all as part of “a multi-faceted scheme to slow Temu’s growth in the United States.”

In a response to Supply Chain Dive’s questions about the allegations, a Shein spokesperson said, “We believe this lawsuit is without merit and we will vigorously defend ourselves.”

The full post can be read here.