Tapestry’s Coach has filed a suit against the fast-fashion specialist Shein for trademark counterfeiting, federal trademark infringement, false advertising and unfair competition.
The 30-page complaint was filed on Thursday in the U.S. District Court in the Central District of California by Tapestry Inc., Coach Services Inc. and Coach IP Holdings against Zoetop Business Co. and Shein U.S. Services. A juried trial is being sought.
The suit alleges that Shein used commerce marks that are “identical or substantially indistinguishable or confusingly similar to Coach trademarks in connection with the sale, distribution and/or advertising” of the alleged counterfeit products.
The allegations include that when one searches for “coach” on Shein’s e-commerce site, there is “no indication” that any of the products originated from a third-party seller. When a shopper selects “what appears to be legitimate ‘Coach’ product for purchase, the third-party seller’s information is so small and inconspicuous that the shopper could “reasonably believe” that Shein was the seller with title or possession of the product.
Attorneys for Tapestry and Coach did not respond immediately Tuesday afternoon to requests for comment, nor did an attorney for Shein. Representatives at both companies also had not returned media requests as of Tuesday afternoon.
Designer dupes and fake fashion items are an ongoing issue for major brands. Nearly seven in 10 consumers were deceived into buying counterfeit products online at least once in 2023, according to research by Michigan State University’s College of Communication Arts and Sciences. Less than two years ago, the U.S. Congress passed the Integrity, Notification and Fairness in Online Retail Marketplaces for Consumers Act to better inform consumers about third-party sellers and to reduce the number of fake and stolen goods that are sold online.
The complaint features multiple pages with photographs of the alleged counterfeit Coach products including tote bags, handbags, shoes, hats and purses. Tapestry alleges that Shein made, marketed and sold knockoff items that used the Coach name, logos, hardware and signature “C” designs. The products highlighted in the legal complaint were items that were sold through Shein’s marketplace platform, which allows third-party users to post product listings.
Describing the “world of Chinese marketplaces” as a bit like the wild west, Neil Saunders, managing director for retail at GlobalData, said “it is hardly surprising that Tapestry wants to use the law as a taming influence. The complaint is legitimate inasmuch as Coach dupes are sold on Shein, and it’s almost impossible for the consumer to understand exactly what they’re buying. That’s detrimental to the Coach brand.”
While it remains to be seen how the courts “interpret the technicalities of the law as the goods are sold by third parties rather than directly by Shein,” Saunders said, “Coach is trying to hold Shein fully liable. If they win, it will be a big victory for brands and will force Shein to take tough action on dupes and counterfeits.”
Like its archrival in the fast-fashion sector Temu, Shein is facing multiple suits that have been brought forward by established brands and little-known artists for trademark infringement and counterfeit goods. The Tapestry-Shein legal action comes at a time when President Donald Trump’s administration is trying to stop ultra-cheap imports from entering the U.S. without tariffs.
