Shein Lawsuit
Chinese-based retailer Shein has gained a notorious reputation for its fast fashion, unethical practices and alleged copyright infringement issues. Despite facing multiple lawsuits and investigations, the company continues to thrive due to its highly competitive pricing strategy, which makes their products affordable to a wide range of consumers. They have been accused of violating the federal anti-racketeering act, RICO, copying three independent designers’ works. On July 11, artists Krista Perry, Larissa Martinez and Jay Baron teamed up to file a lawsuit against the e-commerce company for making exact copies without their knowledge and consent. “Shein has grown rich by committing individual infringements over and over again, as part of a long and continuous pattern of racketeering, which shows no sign of abating,” the filing said. “It is not an exaggeration to suggest that Shein’s pattern of misconduct involves commission of new copyright and trademark infringements every day.”
The RICO act, short for the Racketeer Influenced and Corrupt Organizations Act, is a United States federal law that was enacted in 1970. It was designed to combat organized crime and provide law enforcement agencies with a powerful tool to prosecute and dismantle criminal enterprises. Although Shein has been accused of stealing designs several times, it was challenging to settle lawsuits in the fashion industry because clothing is a utility item that has limited protections.
Perry alleges that Shein has replicated multiple pieces of her work by incorporating her designs onto their website's merchandise. In 2015, Perry established her own business after completing her BFA in illustration at Massachusetts College of Art and Design. Her website showcases vibrant and nostalgic prints. Perry reached out to a Shein representative regarding the stolen artwork and was offered $500 as compensation. “How dare you contact me after my artwork has been stolen and the hard time I was put through with the people at Shein to resolve it,” Perry told Shein, according to the filing. $500 isn’t a lot when Shein has a very large consumer market– although they were only selling it for $3, thousands of people browse their site everyday and none of that money is going toward Perry.
Baron is the founder of Retro Supply Co. who specializes in selling embroidered patches and stickers. He asserts that the fast-fashion company unlawfully appropriated one of his patches featuring the phrase, “Hello, I’m Trying my Best.” As for Martinez, she is the CEO of the clothing brand Miracle Eye and said the retailer copied her daisy overalls.
Larissa Martinez’s original floral overalls next to the pair Shein is selling on their website. Source: CBS News
Krista Perry’s original print next to the one Shein is selling on their website. Source: CBS News
Jay Baron’s embroidery patch vs the one Shein is selling on their website. Source: CBS News
This isn’t Shein’s first time being hit with a lawsuit. Last July, they were sued by Florida artist Magdalena Mollman for $100 million for allegedly stealing one of her designs. The freelance illustrator claimed copyright infringement, vicarious and/or contributory copyright infringement, removal of copyright management information and false copyright management information. Mollman has worked with big companies like Urban Outfitters, Sephora and Elle Magazine. There have been no new updates on the case.