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The lawsuit is just the latest in a series of difficulties Shein has faced. That amounts to a violation of the Racketeer Influenced and Corrupt Organizations Act, or RICO, the claim alleges.Ī company representative told CBS MoneyWatch it doesn't comment on pending litigation.
The company allegedly engages in a pattern of copyright infringement as part of its effort to produce 6,000 new items each day for its millions of customers. The reproduced products weren't "close call" copies, where designs are interpreted with some liberties, but were "truly exact copies of copyrightable graphic design" that were sold by Shein, the lawsuit alleges. The complaint was filed on Tuesday in California federal court on behalf of three designers who claimed they were "surprised" and "outraged" to see their products faithfully copied and sold by the Chinese fast-fashion retailer.
Shein is a popular online destination for social influencers and shoppers to stock up on trendy yet affordable clothing, but a new lawsuit alleges that the site maintains its edge by engaging in "egregious" copyright infringement that constitutes racketeering. Shein repeatedly stole designs, violated the RICO Act, lawsuit claims 04:30
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