And two of the top low cost online retailers are
going head to head in a new legal battle.
Tau's American parent company sued Shean accusing them of
unfair practices that block suppliers from working with them.
General news, senior reporter Michelle Castillo
is here to break it all down.
So Michelle tell us more about this lawsuit
and uh Temu was accusing Sheen of using quote mafia style intimidation
to make sure suppliers don't work with them
and there's a whole host of other unfair practices.
Temu is alleging Sheen is doing to maintain a competitive edge.
Now, this lawsuit was filed by Wal
Co, which is Temu American counterpart
yesterday in a Boston court,
it said that Xian would illegally detain merchants and suppliers in meetings
and take their cell phones in order to block them from working with
Timo.
And Timo also said that Sheen
would steal merchant accounts and passwords and
use those to take Timo's proprietary information.
Now,
the lawsuit also alleges that Xian incorrectly used intellectual property laws.
It claims Sheen
would file thousands of fake Digital Millennium Copyright Act claims forcing the
Timo to take down images that were
actually not in violation of current regulations.
That is so interesting.
So how popular are these two companies among American shoppers?
Now,
Sheen and Timo are going head to head when it
comes to fast fashion online shopping in the US.
Xian was the number one brand in the world. According to money publication,
it reported $22.7 billion in sales last year and was
constantly topping the US APP store app download charts.
It's known for its ultra fast fashion.
On average,
she and ads get this 2000 new items a day in its store and
these are made in small batches and
then orders are expanded depending on popularity.
Now,
the Wall Street Journal reported that she is planning to go
public next year with a valuation as high as $90 billion.
But
she
is not always topping the sales charts this year in America.
So according to Bloomberg,
Timo beat she and sales in America by 20% in May for the first time.
And ever since then TMO has actually increased its dominance.
Part of what makes Timo so appealing to us
shoppers is it offers a wide variety of products whereas
and focuses mostly on clothing.
Some home decor Morgan Stanley said that Timo's items can
be up to 70% cheaper than similar products on Amazon.
And this isn't the first lawsuit between these two companies.
So how far back does this go Michelle? That's right.
Hannah, the battle has been ongoing.
So this all started in December of last year when
she and sued TMU over allegedly stealing its intellectual property.
Then a few months later in July TMU sued
she and over allegedly making manufacturers sign exclusivity agreements,
but both companies actually dropped their lawsuits against each other in October.
But this new TMU lawsuit,
especially with that mafia accusation is sure to keep the fight ongoing
Michelle Castillo.
Thank you so much.