For some time now, the fast fashion giant Shein has been under scrutiny. The brand has faced many controversies over the last few years and it seems like they have finally caught up to them.
In a new RICO lawsuit filed against Shein, the fast fashion retailer is being accused of a systematic operation to steal designers’ intellectual property while exploiting a complex corporate structure to avoid legal consequences.
Independent designers Krista Perry, Larissa Martinez, and Jay Baron claim Shein produces and sells exact copies of their designs. The lawsuit alleges Shein uses a secretive algorithm to identify fashion trends and only produces a limited quantity of allegedly stolen items to avoid infringement allegations. If demand persists and there is no threat of infringement, Shein allegedly increases production.
The plaintiffs claim that Shein uses multiple entities and a decentralized structure to deflect liability for intellectual property infringement. The lawsuit also claims that Shein knowingly engages in criminal copyright infringement.
Loading ...