Temu files lawsuits against ‘cybersquatters’ in US e-commerce market as it seeks to end legal fights with rival Shein

The rapidly expanding online marketplace, Temu, owned by Shanghai-based PDD Holdings, has initiated a lawsuit against 20 websites in the United States. These websites are accused of cybersquatting and distributing unauthorised coupon codes. Concurrently, Temu is seeking to resolve its ongoing legal disputes with its major competitor, Shein. The Chinese budget shopping platform has targeted website domains that mimic Temu, such as “temuapp. biz” and “temucouponcodes. com”, which are also distributing coupon codes without authorisation. This information is based on a complaint filed with the US District Court for the Northern District of Illinois on Monday.

Temu has accused these websites of “trademark infringement, unfair competition and false designation of origin”. The company is seeking compensation for damages or US$100,000 for each instance of the counterfeited use of Temu’s trademark. Additionally, Temu has requested the court to issue temporary bans on the accused websites during the course of the lawsuit. “Fraudsters are masquerading as Temu on counterfeit apps and websites to deceive consumers. This not only tarnishes our reputation but also harms consumers who have been misled into believing that they were interacting with authentic Temu platforms,” a spokesperson for Temu stated on Wednesday.

“We will promptly take legal action to defend our rights and safeguard our customers from such malicious and unlawful activities. ” Temu’s lawsuits have been filed amidst a period of rapid growth following its entry into the US e-commerce market last September, prior to its expansion into Europe, Asia and the Middle East. In a separate development, Temu and the fast-fashion online retailer Shein have been seeking to conclude a series of high-profile legal disputes in the US. Last week, both companies filed declarations to courts requesting that two legal cases be dismissed “without prejudice” by judges. Temu had previously sued Shein, which was founded in Nanjing and is headquartered in Singapore, alleging that Shein had coerced manufacturers into exclusivity agreements, according to a complaint filed in July. This followed an earlier move by Shein, which claimed that Temu had infringed on its trademarks and copyright, and had engaged in unfair business practices, such as impersonating its brand on social media and collaborating with influencers to disparage its business. Both companies have previously refuted these accusations.