Fast-growing online marketplace Temu, owned by Shanghai-based PDD Holdings, has filed a lawsuit against 20 websites in the United States for cybersquatting and offering unauthorised coupon codes, while the e-commerce app also looks to end its legal fights with major rival Shein.
The Chinese budget shopping platform has targeted website domains that imitate Temu, such as “temuapp.biz” and “temucouponcodes.com”, as well as offering coupon codes without authorisation, according to a complaint filed with the US District Court for the Northern District of Illinois on Monday.
Temu accused the sites of “trademark infringement, unfair competition and false designation of origin”, and is seeking compensation for damages or US$100,000 for each use of the counterfeited use of Temu’s trademark. Temu has also asked the court to issue temporary bans on the sites accused of infringements during the course of the suit.
“Fraudsters are posing as Temu on fake apps and websites to scam consumers. This not only damages our reputation but also hurts consumers who have been deceived into believing that they were engaging with genuine Temu platforms,” a Temu spokesperson said on Wednesday.
“We will take swift legal action to defend our rights and shield our customers from such malicious and unlawful activities.”
How Shein and Temu are changing the face of China’s vast export machine
How Shein and Temu are changing the face of China’s vast export machine
Temu’s lawsuits come amid a rapid rise after it entered the US e-commerce market last September, before its expansion into Europe, Asia and the Middle East.
It followed an earlier move by Shein which alleged that Temu had infringed on its trademarks and copyright, and used unfair business practices, such as impersonating its brand on social media and working with influencers to disparage its business.
Both companies have previously denied the accusations.
The stakes are high for Temu in the US, a major market for the low-price marketplace as it gears up for the upcoming shopping season Black Friday. It was the most downloaded app in the first three quarters of 2023, according to a report by Data.ai last week, ahead of Shein and the US e-commerce giant Amazon.
The US market contributed 60 per cent of Temu’s sales, which reached US$5 billion in the third quarter, Chinese tech media outlet 36Kr.com reported last week. Temu’s September sales have closed in on Shein in the US market, according to a separate report by Chinese media outlet LatePost last week.
Temu’s owner PDD Holdings also operates low-cost e-commerce platform Pinduoduo in mainland China.