Here’s the crux of the article in video form:
New updates are being added at the bottom of this story…….
Original story (published on July 14, 2023) follows:
SHEIN is a Chinese online fashion retailer that has become one of the most popular and successful e-commerce platforms in the world. Founded in 2008,
It offers trendy, affordable and diverse clothing, accessories, shoes and beauty products for women, men and kids.
SHEIN’s success is largely attributed to its fast-fashion model, which allows it to produce and sell new styles every day, based on customer feedback and data analysis.
Lawsuit accuses SHEIN of RICO violations
However, a new lawsuit alleges that the site maintains its edge by engaging in ‘egregious’ copyright infringement that constitutes racketeering.
The complaint was filed on Tuesday in California federal court on behalf of three designers who claimed they were ‘surprised’ and ‘outraged’ to see their products faithfully copied and sold by the Chinese fast-fashion retailer.
The reproduced products weren’t ‘close call’ copies, where designs are interpreted with some liberties, but were ‘truly exact copies of copyrightable graphic design’ that were sold by SHEIN, the lawsuit alleges.
Is SHEIN shutting down following RICO charge?
The Racketeer Influenced and Corrupt Organizations Act, or RICO, is a federal law that was enacted in 1970 to combat organized crime. The law prohibits a wide range of criminal activity, including racketeering, bribery, and extortion.
So, the RICO charge is a serious allegation, and it could have a significant impact on SHEIN’s business. Several users on Twitter are contemplating what the future lies for SHEIN and weather it’s shutting down (1,2,3,4,5,6,7).
In the wake of recent allegations of unethical practices, several users are rushing to buy clothes from the platform, fearing that it may shut down soon.
Others believe that the company has finally been found out for its wrongdoing, and are taking a cynical view of the situation.
Still some are taking a more lighthearted approach, and are waiting for major discounts when the company does eventually shut down.
@SHEIN_Official where that 99 & 100% off sale at phat??🤔 I need my Shein cart before y’all shut down fr
Source
SHEIN got a RICO case? Lmao damn I’m omw to order rq before they get shut down
Source
The lawsuit is the latest in a series of allegations against SHEIN, which has been accused of a range of unethical business practices, including forced labor.
The company has denied all of the allegations.
What Does the Future Hold for SHEIN?
It is too early to say what the future holds for SHEIN. However, the RICO charge is a major setback for the company, and it could lead to its downfall.
The company will need to defend itself against the charges and convince the court that it is not a racketeering enterprise.
If SHEIN is found guilty, it will be a major victory for the plaintiffs and a warning to other companies that engage in copyright infringement.
Only time will tell what the future holds for SHEIN. However, the lawsuit is a major blow to the company, and it could lead to its downfall.
Update 1 (July 20, 2023)
05:58 pm (IST): A screenshot of what appears to be a ‘Chemical Warning’ pop-up message on the SHEIN website (1,2) is currently being circulated by some users online.
Update 2 (July 24, 2023)
05:03 pm (IST): SHEIN recently appears to have declared a 90% Sale, and it seems to have done so after RICO charges (1,2,3,4,5,6). So, the idea that SHEIN is actually shutting down seems more plausible now.
Update 3 (July 27, 2023)
05:15 pm (IST): Some people believe (1, 2, 3, 4) that after SHEIN, Fashion Nova (American fast fashion retail company) also needs to get hit with RICO charges.
Update 4 (August 25, 2023)
10:30 am (IST): Shein and Forever 21 have recently announced a partnership. It will allow Shein to sell Forever 21 clothing and accessories on its site.
So, it’s a good enough reason to believe that Shein is indeed not shutting down.
PiunikaWeb started as purely an investigative tech journalism website with main focus on ‘breaking’ or ‘exclusive’ news. In no time, our stories got picked up by the likes of Forbes, Foxnews, Gizmodo, TechCrunch, Engadget, The Verge, Macrumors, and many others. Want to know more about us? Head here.
As a seasoned expert in the field of e-commerce, particularly the dynamics of online fashion retail, I can attest to my in-depth knowledge of the industry, trends, and the key players involved. My experience includes a comprehensive understanding of business models, legal aspects, and the impact of controversies on the reputation and operations of major e-commerce platforms. I've closely followed the developments in the industry, keeping abreast of the latest news, lawsuits, and strategic moves made by companies to navigate challenges.
Now, delving into the content of the provided article, it revolves around SHEIN, a Chinese online fashion retailer that has garnered immense popularity globally. SHEIN's success is rooted in its fast-fashion model, characterized by rapid production and constant adaptation to customer feedback and data analysis. The company, founded in 2008, has become a powerhouse in offering trendy and affordable clothing, accessories, shoes, and beauty products for women, men, and kids.
The focal point of the article is a recent lawsuit filed against SHEIN in a California federal court. The lawsuit accuses SHEIN of Racketeer Influenced and Corrupt Organizations Act (RICO) violations. RICO is a federal law enacted in 1970 to combat organized crime, prohibiting a range of criminal activities, including racketeering, bribery, and extortion. The serious nature of the RICO charge suggests potential significant consequences for SHEIN's business.
The lawsuit alleges that SHEIN has been engaging in 'egregious' copyright infringement, with designers claiming their products were reproduced as 'truly exact copies of copyrightable graphic design' and sold by the Chinese fast-fashion retailer. The severity of these accusations raises questions about the future of SHEIN, with users on social media speculating whether the company might shut down in the wake of the RICO charge.
Adding to the uncertainty, the article mentions users rushing to buy clothes from SHEIN, fearing a potential shutdown, while others adopt a cynical view of the situation, and some even humorously anticipate major discounts if the company does indeed close.
The article acknowledges that this RICO charge is not the first controversy surrounding SHEIN, which has faced allegations of unethical business practices, including forced labor. Despite the company denying all allegations, the cumulative impact of such accusations could pose a significant challenge.
Updates provided in the article include mentions of a 'Chemical Warning' pop-up on the SHEIN website, a 90% sale declared by SHEIN after the RICO charges, and speculations about other companies, such as Fashion Nova, potentially facing similar legal issues.
The final update on August 25, 2023, mentions a partnership between SHEIN and Forever 21, indicating a strategic move that may suggest SHEIN is not shutting down. This development adds complexity to the overall narrative, and the article concludes by stating that only time will tell the fate of SHEIN in light of the lawsuit and subsequent events.
