Shein faces more legal trouble, reportedly breaks own settlements

Fast fashion giant Shein is facing more legal trouble this week, as pressure over its alleged sales of cheap knock-offs continues to grow despite the company previously vowing to stop such processes.

According to media reports, the Chinese retailer has been accused of breaching its own legal settlements as it reportedly continues to offer “counterfeit” items that it had agreed to put a stop to, building on the persistent allegations and claims of repeat transgressions that have mounted over the years.

One of its most recent cases involved sunglasses manufacturer Oakley, for which Shein is now said to be finalising its second legal settlement in the space of two years after Oakley described the firm as “repeat counterfeiters” in a legal filing.

The Financial Times (FT), which initially reported the news, said that the total number of copyright cases against Shein is understood to have grown to nearly 100, according to legal filings.

Meanwhile, Shein has continued to deny such allegations, stating that it had invested in systems to detect copyright infringement in its supply chain.

The report comes at a time when Shein is attempting to file an IPO in the US, a move that has received significant backlash from politicians in the country who have rallied against Shein in light of reports of forced labour among its workforce.

As such, FT reported that Shien had been paying out more for lobbying in Washington, with disclosures seen last week revealing that it had spent three million dollars in 2023.