"Shein made its offer as if it were a mom-and-pop operation rather than one of the richest enterprises in the world," the suit alleges. Perry complained to Shein via contact forms on its websites about the copy, describing it as "incredibly disheartening, insulting and downright evil to profit off of artists without their knowledge or permission." One of the designers who is suing Shein, Krista Perry of Worcester, Massachusetts, discovered copies of a graphic poster with the words "Make It Fun" for sale on Shein and a sister site,. "Shein has also been accused of other kinds of labor violations having to do with sweatshops and wage theft in China.and we don't want to be a party to that," Susan Scafidi, founder and director of the Fashion Law Institute of Fordham University, told CBS News.
In May a bipartisan group of two dozen lawmakers asked the Securities and Exchange Commission to put the brakes on an initial public offering by Shein until it verified that it does not use forced labor from the country's predominantly Muslim Uyghur population.
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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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