The continuous presence of Temu’s infringing listings has prompted some Amazon sellers to start legal proceedings against the Chinese eCommerce site, alleging copyright infringement and trademark infringement, Wired reported Monday (July 10).
Temu is also currently in a legal dispute with fast-fashion retailer Shein, which alleges improper marketing practices, per the report.
“These Temu sellers are stealing other people’s information, making false advertisements, and hurting the interests of consumers,” one Amazon seller said in the report.
Temu and Amazon did not immediately reply to PYMNTS’ request for comment.
An Amazon spokesperson told Wired: “We strongly condemn this type of criminal activity. If a brand believes their Amazon product information or images are being copied and used to sell infringing products elsewhere, we encourage them to contact our Counterfeit Crimes Unit.”
Chinese eCommerce company Pinduoduo launched Temu in the United States in September, in a move that marked its first major overseas expansion. The site sells products in various categories, including clothing, pet suppliers, and home and garden.
Temu is known for its business model of selling low-cost unbranded goods to price-sensitive consumers, according to the Wired report. To help it undercut rivals, Temu has pressured sellers to drop prices in their supply chain.
Amazon sellers interviewed for the report said they found their products, product descriptions and other marketing materials copied by competitors selling on Temu.
One Amazon seller said his sales of a product that had been replicated dropped by more than 20%, per the report. Another seller said the versions of her products sold on Temu are listed at half the price of the originals and that she has seen a “drastic” decline in sales.
Amazon’s efforts to combat counterfeiting include its April launch of a private-sector partnership that allows participating stores to share information about counterfeiters to help all industry participants identify and stop counterfeiters who might try to use their services.
The worldwide trade in counterfeit and pirated goods totals over $500 billion a year, according to Patrick Kilbride, senior vice president of the Global Innovation Policy Center at the U.S. Chamber of Commerce.
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