Chinese fast-fashion retailer Shein is suing e-commerce competitor Temu, alleging that Temu stole product designs and trade secrets.

The complaint was filed in federal court in Washington, D.C. on August 18, according to the Associated Press. In it, Shein claims that Temu's ultra-low prices have been facilitated by allowing sellers to offer counterfeit items based on stolen designs. The retailer also accuses Temu of "masquerading" as a legitimate business, and preventing sellers from removing items that infringe on copyrights from its online store.

“Only by encouraging its sellers to infringe [on] the intellectual property rights of others and sell counterfeit or sub-standard goods can Temu hope to minimize the massive losses it is subsidizing,” the lawsuit reads. 

In a statement to the Associated Press responding to Shein's lawsuit, a spokesperson for Temu refuted the claims, adding that Shein's "audacity is unbelievable." 

Temu has levied similar accusations against Shein in the past, alleging in a July 2023 lawsuit that Shein had threatened suppliers to prevent them from working with Temu. Months later, Temu filed another complaint claiming that Shein had issued tens of thousands of illegitimate copyright claims, and frequently engaged in "mafia-style intimidation" of manufacturers.