{"id":31187,"date":"2023-07-14T04:55:53","date_gmt":"2023-07-14T04:55:53","guid":{"rendered":"https:\/\/news24feed.com\/?p=31187"},"modified":"2023-07-14T04:55:53","modified_gmt":"2023-07-14T04:55:53","slug":"sheins-lawsuit-accuses-a-fast-fashion-site-of-rico-violations","status":"publish","type":"post","link":"https:\/\/news24feed.com\/?p=31187","title":{"rendered":"Shein&#8217;s lawsuit accuses a fast fashion site of RICO violations"},"content":{"rendered":"<p><\/p>\n<p>Shein is a popular online destination for social influencers and shoppers to stock up on trendy yet affordable clothing, but a new <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.cacd.891125\/gov.uscourts.cacd.891125.1.0_2.pdf\" target=\"_blank\" rel=\"nofollow noopener\">lawsuit<\/a> alleges that the site maintains its advantage by engaging in &#8220;egregious&#8221; copyright infringement that constitutes extortion. <\/p>\n<p>The complaint was filed Tuesday in federal court in California on behalf of three designers who said they were &#8220;shocked&#8221; and &#8220;outraged&#8221; to see their products faithfully copied and sold by the Chinese fast-fashion retailer.<\/p>\n<p>The reproduced products were not &#8220;close&#8221; copies, where the designs are interpreted with some liberties, but were &#8220;truly exact copies of the copyrighted graphic design&#8221; that was sold by Shein, according to the suit.  The company allegedly engages in a pattern of copyright infringement as part of its effort to produce 6,000 new articles every day for its millions of customers.  That&#8217;s a violation of the Racketeer Influenced and Corrupt Organizations Act, or RICO, according to the complaint.<\/p>\n<p>&#8220;Shein has enriched himself by committing individual violations time and time again, as part of a long and ongoing pattern of abuse, which shows no signs of abating,&#8221; the lawsuit alleges. <\/p>\n<p>Shein is the world&#8217;s largest fashion retailer with annual sales of nearly $30 billion, more than H&#038;M and Zara combined, the lawsuit notes.<\/p>\n<p>A company representative told CBS MoneyWatch that it does not comment on pending litigation. <\/p>\n<h2>&#8220;Characteristically Evil&#8221;<\/h2>\n<p>One of the designers who is suing Shein, Krista Perry of Worcester, Massachusetts, discovered copies of a graphic poster with the words &#8220;Make It Fun&#8221; for sale on Shein and a sister site, Romwe.com.  Perry complained to Shein via their website&#8217;s contact forms about the copying, describing it as &#8220;incredibly disheartening, insulting and downright mean to take advantage of artists without their knowledge or permission.&#8221;<\/p>\n<p>Shein responded with an offer of $500.  &#8220;Shein made his offer as if it were a mom-and-pop operation rather than one of the wealthiest companies in the world,&#8221; the suit alleges.<\/p>\n<p><span class=\"img embed__content\"><img alt=\"make-it-fun-artwork.jpg \" height=\"320\" width=\"620\" class=\" lazyload\" srcset=\"https:\/\/assets2.cbsnewsstatic.com\/hub\/i\/r\/2023\/07\/13\/de316646-876b-438f-ac95-1e6639b0f903\/thumbnail\/620x320\/17cad5a176d5f5fa6b87afeda5b6e1ee\/make-it-fun-artwork.jpg?v=b9ad248140817530b57bedd1355bcccb 1x, https:\/\/assets1.cbsnewsstatic.com\/hub\/i\/r\/2023\/07\/13\/de316646-876b-438f-ac95-1e6639b0f903\/thumbnail\/1240x640\/18cc92477760c430d55d30a27c46575c\/make-it-fun-artwork.jpg?v=b9ad248140817530b57bedd1355bcccb 2x\"\/><\/span><\/p>\n<p>          <span class=\"embed__caption\">The lawsuit was filed on behalf of three designers, including Krista Perry, whose &#8220;Make It Fun&#8221; poster (left) was allegedly copied exactly by Shein (right).  When Perry reached out to complain, Shein offered her $500, according to the lawsuit. <\/span><\/p>\n<p>                  <span class=\"embed__credit\"><\/p>\n<p>                Aimee Peaks<\/p>\n<p>                          <\/span><\/p>\n<p>The lawsuit claims that Shein&#8217;s pattern, when accused of copyright infringement, is to claim he had low sales and blame a third-party organization for the theft. <\/p>\n<p>&#8220;Shein will also offer an apology and a vague explanation that makes it seem like this was an anomaly; somehow Shein crossed the wires and produced a very small number of exact copies of the designer&#8217;s products,&#8221; al\u00b7 read the demand  &#8220;[N]One time out of 10, the designer&#8217;s advisor will accept what is offered or negotiate a little more.&#8221;<\/p>\n<p>The other two designers, Jay Baron of Burbank, California, and Larissa Blintz of Los Angeles, also alleged that their designs were copied exactly by Shein.  Baron created an artwork called &#8220;Trying My Best,&#8221; which was allegedly copied and sold by Shein, while Martinez&#8217;s &#8220;Orange Daisies&#8221; outfit was also copied.<\/p>\n<p><span class=\"img embed__content\"><img alt=\"trying-my-best.png \" height=\"182\" width=\"620\" class=\" lazyload\" srcset=\"https:\/\/assets1.cbsnewsstatic.com\/hub\/i\/r\/2023\/07\/13\/569fccbf-1af7-4a5c-8228-3a22e3f135f1\/thumbnail\/620x182\/7d0d6faa3b6c26591cf4b7c63a3d6654\/trying-my-best.png?v=b9ad248140817530b57bedd1355bcccb 1x\"\/><\/span><\/p>\n<p>          <span class=\"embed__caption\">Jay Baron&#8217;s design was allegedly copied by Shein, which the lawsuit claims would create &#8220;confusion, deception, and error by creating the false and misleading impression that Shein&#8217;s products are manufactured by, associated with, or connected to Baron.&#8221;<\/span><\/p>\n<p>                  <span class=\"embed__credit\"><\/p>\n<p>                Aimee Peaks<\/p>\n<p>                          <\/span><\/p>\n<p>Perry suffered &#8220;substantial damages to his business in the form of diversion of trade, loss of profits and a diminution in the value of his designs and art, his rights and his reputation,&#8221; the suit alleges.<\/p>\n<h2>Who owns Shein?<\/h2>\n<p>Part of the challenge in pursuing Shein in court is its decentralized, even Byzantine, structure, the lawsuit noted. <\/p>\n<p>Shein &#8220;is a loose and ever-changing (although continuing although some individual elements may change to be replaced by others) association of entities and individuals,&#8221; the lawsuit stated.  Designers without a lawyer &#8220;face an absolute brick wall,&#8221; the lawsuit added, noting that even people with lawyers on their side can struggle to find &#8220;a suitable defendant.&#8221;<\/p>\n<p>As a result, the plaintiffs allege a violation of the RICO Act, which is &#8220;designed to address the misconduct of culpable individual cogs in a larger enterprise,&#8221; the lawsuit states.<\/p>\n<p>&#8220;The unrepresented parties face an absolute brick wall,&#8221; the lawsuit states.  &#8220;But even plaintiffs with lawyers, with strong cases, struggle to find a suitable defendant. In the end, they simply sue any party they can find and hope to settle the matter in discovery.&#8221;<\/p>\n<p>Shein was founded in 2012 by Chinese entrepreneur Chris Xu, also known as Xu Yangtian, who is valued <a href=\"https:\/\/www.forbes.com\/profile\/chris-xu\/?sh=d68bb0d7aa4c\" target=\"_blank\" rel=\"nofollow noopener\">over $10 billion<\/a> by Forbes.  But not much is known about him, <a href=\"https:\/\/www.theguardian.com\/business\/2022\/jul\/30\/chris-xu-shein-mysterious-billionaire-founder-fast-fashion\" target=\"_blank\" rel=\"nofollow noopener\">seconds<\/a> in The Guardian, which noted the varying reports of his background, with some stories describing him as a Chinese-American who studied at George Washington University, while others say he was born in Shandong in 1984 and studied in Qingdao University of Science and Technology.<\/p>\n<p>&#8220;There is no Coco Chanel or Yves Saint Laurent behind the Shein empire. Rather, there is a mysterious tech genius, Xu Yangtian, aka Chris Xu, about whom almost nothing is known,&#8221; the lawsuit alleges .<\/p>\n<h2>What is a RICO charge?<\/h2>\n<p>The RICO Act of 1970 was designed as a way to combat the exploitation of legal businesses by organized crime, <a href=\"https:\/\/www.ojp.gov\/ncjrs\/virtual-library\/abstracts\/legislative-history-rico-racketeer-influenced-and-corrupt\" target=\"_blank\" rel=\"nofollow noopener\">seconds<\/a> in the Department of Justice.  Although often considered a law to combat organized crime, the RICO Act has also been used to prosecute white-collar crimes such as the Enron accounting scandal and Bernie Madoff&#8217;s financial pyramid scheme. <\/p>\n<p>Racketeering generally refers to an illegal activity carried out by extortion or fraud, but the RICO Act also has a civil section that can be used for consumer protection or to protect against commercial fraud. <a href=\"https:\/\/www.ojp.gov\/ncjrs\/virtual-library\/abstracts\/racketeer-influenced-and-corrupt-organizations-act-hardly-civil\" target=\"_blank\" rel=\"nofollow noopener\">seconds<\/a> in the Department of Justice. <\/p>\n<p>&#8220;It is well established that flagrant copyright infringement (of the kind alleged here and of the kind referenced in other similar cases against Shein) constitutes extortion,&#8221; the lawsuit states.<\/p>\n<p><h3 class=\"component__title\">Trending news<\/h3>\n<\/p>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.cbsnews.com\/news\/shein-lawsuit-rico-violations\/\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shein is a popular online destination for social influencers and shoppers to stock up on trendy yet affordable clothing, but a new lawsuit alleges that the site maintains its advantage by engaging in &#8220;egregious&#8221; copyright infringement that constitutes extortion. The complaint was filed Tuesday in federal court in California on behalf of three designers who said they were &#8220;shocked&#8221; and &#8220;outraged&#8221; to see their products faithfully copied and sold by the Chinese fast-fashion retailer. The reproduced products were not &#8220;close&#8221; copies, where the designs are interpreted with some liberties, but were &#8220;truly exact copies of the copyrighted graphic design&#8221; that&#8230; <\/p>\n","protected":false},"author":8,"featured_media":31188,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-31187","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-videos"],"_links":{"self":[{"href":"https:\/\/news24feed.com\/index.php?rest_route=\/wp\/v2\/posts\/31187","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/news24feed.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news24feed.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news24feed.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/news24feed.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31187"}],"version-history":[{"count":1,"href":"https:\/\/news24feed.com\/index.php?rest_route=\/wp\/v2\/posts\/31187\/revisions"}],"predecessor-version":[{"id":31189,"href":"https:\/\/news24feed.com\/index.php?rest_route=\/wp\/v2\/posts\/31187\/revisions\/31189"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news24feed.com\/index.php?rest_route=\/wp\/v2\/media\/31188"}],"wp:attachment":[{"href":"https:\/\/news24feed.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news24feed.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news24feed.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}