[Updated] Is SHEIN shutting down following RICO charge? Here's what we know

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.

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.

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.

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.

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.

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.

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.

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.