Shein Faces RICO Lawsuit for Alleged Criminal Activity and IP Infringement
Shein, the popular online fast-fashion retailer, is facing a lawsuit alleging "egregious" copyright infringement that constitutes racketeering. The lawsuit claims that Shein produces exact copies of copyrighted designs as part of its effort to release 6,000 new items daily. The company is accused of violating the Racketeer Influenced and Corrupt Organizations Act (RICO). Three designers have filed the lawsuit, claiming that their designs were copied by Shein. The decentralized structure of Shein poses a challenge for pursuing legal action. Shein, with annual sales of nearly $30 billion, is the largest fashion retailer globally.