Chinese retailer accused of racketeering

Three graphic designers filed a lawsuit against the fashion company Shein in California on Tuesday. The China-based online retailer is known for offering fast fashion for very cheap prices. The plaintiffs claim that the company stole their designs and used shell companies and third-party vendors to cover its tracks. The lawsuit argues that Shein’s brand infringement is on a scale large enough to qualify as racketeering. RICO, the Racketeer Influenced Corrupt Organizations Act, is typically used to fight organized crime. Racketeering can also apply to copyright infringement in some extreme cases.

Has Shein faced allegations in the past? It is not the first time the company has been accused of stealing designs. A congressional report released last month blasted Shein and another Chinese retail company, Temu. Shein has been criticized for poor environmental standards, unsafe working conditions, and the use of forced labor from the Uyghur minority.

Dig deeper: Read June Cheng’s report in WORLD Magazine about China’s treatment of Uyghurs.