Everything you need to know about Shein’s RICO lawsuit
What Shein's RICO and copyright infringement lawsuit reveal about the detrimental effects of fast fashion for Black shoppers.
This week, all eyes were on fast-fashion retailer Shein — and not for its latest drop. On Tuesday, three designers filed a complaint through the California federal court claiming the Singapore-based company stole their designs, using complex systems and third parties to hide its tracks.
Whether you’re an avid Shein shopper, a fashion fanatic or simply want to know the tea, here’s a breakdown of the entire situation and why it’s worth your attention.
The root of it all: Copyright infringement
Designers Krista Perry, Larissa Martinez and Jay Baron have each accused the fashion conglomerate of copying and selling “truly exact copies of copyrightable graphic design,” as reported by CBS News. A copyright is a legal concept granting exclusive rights to the creators of original works, such as books, music, art, films, designs and more. Copyrights ensure creators control how their work is used, reproduced, distributed and displayed.
By allegedly producing and distributing exact replicas of these designers’ works, Shein has ostensibly infringed on their copyrights, hence the lawsuit. However, unlike other copyright cases in the fashion industry, Shein faces a RICO charge for exhibiting patterns of racketeering.
What is a RICO charge?
RICO is an acronym for the Racketeer Influenced and Corrupt Organizations Act, created in 1970. According to the U.S. Department of Justice, the act is best known for being created to stop organized crime, but it also exists to protect consumers from commercial fraud. Shein is facing a RICO violation for allegedly exhibiting patterns of racketeering; in other words, for illegally acquiring business. In this case, the illegal business would be the unauthorized use of other creators’ designs.
“Shein has grown rich by committing individual infringements over and over again, as part of a long and continuous pattern of racketeering, which shows no sign of abating,” the lawsuit cited, per CBS News.
For Perry, one of the designers suing Shein, seeing her “Make It Fun” design sold on Shein was “incredibly disheartening, insulting and downright evil to profit off of artists without their knowledge or permission.”
After Perry contacted the company, Shein reportedly offered the designer $500, claiming a third-party vendor as the culprit. The lawsuit claims Shein uses shell companies and third-party vendors as a cop-out for infringing on designers’ copyrights.
In light of these allegations, a Shein spokesperson told theGrio:
“Shein takes all claims of infringement seriously, and we take swift action when complaints are raised by valid IP rights holders. We will vigorously defend ourselves against this lawsuit and any claims that are without merit.”
Shein’s history of controversy
Just as the fast-fashion company’s business grew, so did a list of copyright complaints from brands and designers, both large and small. According to the Wall Street Journal, Shein has previously faced legal complaints from well-known brands Stüssy and Ralph Lauren, among others, making the online retailer a defendant in at least 50 federal copyright infringement and trademark lawsuits in the last three years. This does not include a number of Black designers, like @Sorojahdesignhaus and @sincerelyriaxo, who have also called out the brand on social media but may not have had the resources to pursue legal action.
Why should you care?
Though it may not seem to impact online shoppers directly, this lawsuit ultimately highlights the longstanding issue of plagiarism in fashion and unveils fast fashion’s detrimental social and environmental impacts.
In addition to the public scrutiny the brand has faced for its business practices, documented poor working conditions and fueling of habitual overconsumption, Shein’s affordable prices come at a high cost to the environment. The brand reportedly produces 6.3 million tons of carbon dioxide annually, which contradicts the United Nation’s efforts to reduce global warming.
For Black consumers, this is particularly important, as research has found the effects of global warming and climate change impact us the most. As a community, Black people face several oppressive systems rendering us more vulnerable to climate-related health issues and poor living conditions. Consequently, these racial disparities often leave Black people in the “climate gap,” a theory explaining how low-income and minority communities are most impacted by climate change.
In addition to the climate gap, Black people in the U.S. continue to face a racial wealth gap. With the current median income for Black households persisting at 35% less than that of white households, it’s not surprising Black consumers are more price-conscious shoppers. The fact is, Shein and other fast-fashion brands are among the most affordable shopping options on the market. Given the high-priced nature of sustainable fashion and fluctuating inflation rates in the United States, Black consumers often feel they have no choice but to shop fast fashion — despite its adverse effects on their own communities.
Ultimately, the power of the Black dollar in the fast-fashion discussion is highly nuanced. But although several systemic factors contribute to Black consumers’ role in the rise of these brands, there is also a lack of knowledge. So, the next time you browse virtual fast fashion aisles, maybe it’s worth asking yourself: “Do I really need this?”
Haniyah Philogene is a multimedia storyteller and Lifestyle reporter covering all things culture. With a passion for digital media, she goes above and beyond to find new ways to tell and share stories.
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