The outcome of the latest legal battle between Chinese e-commerce giants Shein and Temu could significantly impact the latter’s operations in South Africa, a major legal firm says.
The outcome of the latest legal battle between Chinese e-commerce giants Shein and Temu could significantly impact the latter’s operations in South Africa.
— Shein alleges Temu copied various clothing designs and photographs of clothing without Shein’s consent. The lawsuit includes various pictures of near identical items on the two websites, with Shein claiming the original designs are its own.— Shein alleges Temu infringed its trademark by using Shein on clothing labels displayed on Temu’s online platforms.— Shein accuses Temu of unlawful competition by misappropriating trade secrets and poaching suppliers and staff.
“If Shein wanted to seek relief against Temu’s business practices in South Africa, it would indeed need to file a lawsuit here, and a court would have to consider the position under South African law,” Griffiths said. “Shein claims that the only reason Temu is able to compete with it on both product and price, is because Temu’s business model is based on the alleged unlawful activities,” Griffiths said.
Both these lawsuits were dropped in October 2023, but Temu again sued Shein in December 2023, accusing the company of intimidating suppliers “mafia-style” to disrupt Temu’s growth in the US.In South Africa, Temu and Shein are already facing significant government scrutiny. The pair are accused of abusing a 2007 concession that enabled them to pay a flat 20% duty with no VAT on their customers’ packages.
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