Shein has been accused of “systematic intellectual property theft” in a new civil RICO lawsuit …
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00:00A recently filed RICO lawsuit accuses SHEIN, the popular fast fashion retail giant,
00:05of systematic intellectual property theft. In the civil lawsuit, three independent designers say
00:10the clothing company produced, distributed, and sold exact copies of their creative work.
00:16One of the designers, who contacted SHEIN after discovering the company was profiting off exact
00:22copies of one of her designs, alleges someone representing SHEIN at the email address
00:27copyright at SHEIN.com only offered her $500 for stealing her work. The lawsuit goes on to argue
00:33that this kind of egregious copyright infringement constitutes racketeering and falls under the RICO
00:39Act. The court filing also alleges SHEIN, which reportedly updates its site with 6,000 new items
00:45daily, has an annual revenue of $30 billion, making it larger than rivals H&M and Zara combined.
00:52The lawsuit attributes SHEIN's success to its unsavory and illegal algorithm
00:57and its practice of collecting a shocking amount of data from its customers.
01:01The civil lawsuit was filed earlier this week in a California federal court
01:05and asks SHEIN to respond within 30 days.