Fashion giant Shein has been slapped with numerous lawsuits for copyright, stealing, data scraping, and more. The company’s most recent lawsuit alleges that they used AI to steal art and popular clothing trends, using this information to then make these trending items themselves.
According to this latest case, these actions mainly harmed small fashion designers attempting to make a name for themselves online.
Shein Is Accused of Copyright Infringement
A class action lawsuit filed against e-commerce fast fashion giant Shein has accused the company of copyright infringement. This suit also alleges that Sehin uses data scrapping, as well as electronic monitoring, to find popular clothing trends.
This complaint was filed in the U.S. District Court in the Southern District of New York.
Stealing Popular Clothing Trends
Upon finding these trends using these nefarious means, Shein then allegedly steals the trends to make their own products that are remarkably similar to the original piece.
Shein is then able to mass produce these purportedly stolen designs and sell them themselves, often at a discounted price.
Using AI
The plaintiff of this case is artist Alan Giana. Giana has accused Shein of using AI to follow what customers look at on social media platforms such as TikTok and Instagram.
This AI system tracks customer behavior, then anticipates the clothing items that may become more trendy and popular.
Sheinâs Practices Hurt Small Designers
According to this suit, this practice of finding trending clothing items and then making the items themselves hurts small designers. Often, these artists or small business owners publish their designs online to get exposure.
Shein then takes their designs and makes the items themselves, mass-producing them in the process.
Shein Doesnât Create Its Own Products
This lawsuit also alleges that Shein doesnât create its own products from scratch. Instead, they allegedly steal the designs.
The complaint says, âShein does not create many of its products; it certainly does not design thousands daily. Instead, it uses sophisticated electronic systems that algorithmically scour the internet for popular works created by artists like Mr. Giana.â
An Audacious Practice
Many legal analysts have noted how Sheinâs practices are incredibly audacious. Brett Lewis, an internet law and intellectual property lawyer of Lewis & Lin LLC, further noted this behavior.
âItâs incredibly sophisticated and awfully brazen,â Lewis said. âAnd it’s somewhat shocking that they’ve been able to get away with it.â
Sheinâs Response to These Allegations
While Shein hasnât responded to this recent lawsuit yet, the company has released a statement in the past when accused of copyright infringement.
Shein previously stated, âSHEIN takes all claims of infringement seriously, and we take swift action when complaints are raised by valid IP rights holders. We will vigorously defend ourselves against this lawsuit and any claims that are without merit.â
Will This Lawsuit Take Down Shein?
This latest lawsuit accuses Shein of illegal behavior. But will the suit actually harm the fast fashion company? Analysts believe that Shein will simply pay away the issue and continue on doing business as normal.
Lewis explained, âSheinâs business model is: If we get sued, we pay, and otherwise, we just keep doing this because it’s so profitable.â
Sheinâs Other Lawsuits
This isnât the first time Shein has had a suit filed against them. In July of 2023, three designers in China sued the company for copyright infringement, as well.
This case is very similar to this latest suit, as these designers accused Shein of using âsecretive algorithmsâ that identified trends and illegally copied artistsâ work. Shein then used these stolen designs and sold them as their own.
Racketeering Charges
According to this 2023 lawsuit, Shein has such an enormous history with copyright infringement charges that theyâre partaking in racketeering. In this way, theyâre using practices related to organized crime.
Sheinâs rival Temu has also accused Shein of partaking in mafia-esque practices in their suit against the company in December of 2023. Temu accused Shein of stealing business secrets, detaining merchants on false charges, and âmafia-style intimidation of suppliers.â
Other Shein Allegations
Though these lawsuits have brought Sheinâs behavior into the light, the company has long had a troubled history of illegal behavior. These allegations range from environmental unsustainability to forced labor.
However, even though these allegations have existed for years now, Shein is still a thriving business that raked in more than $30 billion last year in revenue.