The world of fast-fashion is heating up! Popular retailer SHEIN has recently filed a lawsuit against the rising e-commerce platform TEMU, alleging copyright infringement and unfair business practices. SHEIN claims that TEMU is not a true marketplace, but rather a platform that exerts excessive control over its sellers. According to the lawsuit, TEMU dictates what products sellers can list and the prices they can charge.
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Is it true? Kinda. Businesses who are approved to sell on TEMU have to submit their products for approval. During the approval process, TEMU will request a lower price for the business. What if the business does not accept the new lower price? Then the product may be rejected from the platform.
This level of control it exerts is different from traditional marketplaces like Amazon, Walmart, and eBay. Sellers on these platforms typically have more freedom to set their own prices.
The lawsuit raises important questions about the future of e-commerce and the relationship between platforms and sellers. As the case unfolds, it will be interesting to see how the court rules and what impact it has on the industry.
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