On July 11, a lawsuit was filed in California against fast fashion retailer Shein. The suit's plaintiffs, artists Krista Perry, Jay Baron, and Larissa Martinez, alleging copyright infringement, saying Shein used its “secretive algorithm” to make exact copies of designer's works.
"Shein's design ‘"algorithm’" could not work without generating the kinds of exact copies that can greatly damage an independent designer's career—especially because Shein's artificial intelligence is smart enough to misappropriate the pieces with the greatest commercial potential," the introduction reads.
In the past many independent brands, have made their issues with the brand's practices clear. In 2022, illustrator Magdalena Mollman sued Shein for $100 million and alleged that the company reproduced her designs and sold them on their website. The company settled earlier this year.
It goes on to say that a "mysterious tech genius" named Xu Yangtian aka Chris Xu, is behind the companies growth, which they claim is in part due to a “secretive algorithm that astonishingly determines nascent fashion trends." The filing also addresses some of Shein's recent controversies, including alleged labor violations at its factories in China, the brand's environmental impact .
The plaintiffs allege that the company is liable under the civil prong of the Racketeer Influenced and Corrupt Organizations Act or RICO, which was initially intended to be used against organized crime. When it comes to civil liability, “RICO's broad provisions encompass many consumer protection, commercial fraud, bribery, official corruption, and security violations which have no connection with organized crime,” according to the Department of Justice. A RICO charge also essentially allows for apparently unrelated crimes with common objectives to be tied into a “prosecutable pattern of racketeering.”
According to The Fashion Law's Julie Zerbo, the lawsuit asserts that this type of claim is appropriate because the alleged misconduct is “committed not by a single entity, but by a de-facto association of entities.”
Shein told CBS MoneyWatch that they don’t comment on pending litigation.
You're right if you feel like you've been hearing about Shein a lot lately. In late June, the brand was under fire because of an influencer trip intended to show off its innovation center in China. Many felt this was the brand's attempt to use the credibility and following of influencers to deflect from the press about their labor practices.
Teen Vogue reached out to Shein for comment.
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