Chinese online retailer Shein reportedly used a “secret algorithm” to identify trending art and steal designs from the artists who created them to replicate on its fast fashion clothing.
The revelation was made in a trial filed by artists Krista Perry, Larissa Martinez and Jay Baron filed in US District Court in Los Angeles. The artists allege that the company violated federal laws on racketeer-influenced and corrupt organizations, known as RICO.
“Shein is actually a bigger societal threat than TikTok because it powerfully contributes to serious issues beyond data security and privacy,” the lawsuit states.
“The brand has earned billions by creating a secret algorithm that amazingly determines emerging fashion trends… coupling it to a corporate structure, including perfectly executed production and execution patterns to grease the inner workings of the algorithm, including its disreputable and illegal aspects,” the lawsuit reads.
From the company Company Website simply brags about using “state-of-the-art technologies and processes in design and sourcing”, but does not explain the technology it uses. Artnet News has contacted Shein for comment.
The plaintiffs further allege that Shein ripped off their designs for its products, claiming that “exact copying is integral to Shein’s ‘design’ process and organizational DNA.”
“Certainly, the quality of Shein’s creations is due, to some extent, to misappropriation of intellectual property,” the lawsuit reads. “On information and belief, most of their merit comes from the minds of other designers, whose permission is never obtained or even asked.”
The artists’ attorneys noted that details about the alleged algorithm remain under wraps, but said “it is possible to infer some facts about Shein’s algorithm by examining its results.”
Shein’s Terms and conditions state that use of the site constitutes a waiver of class action rights and state that all content on the site is copyrighted by the Company: “As we ask others to respect our intellectual property rights, we respect the intellectual property rights of others.”
This isn’t the first time the retailer has allegedly stolen designs from artists. United States-China Economic and Security Review Commission prepared a damning dossier to Congress earlier this year on corporate practices, citing a the wall street journal report of at least 50 ongoing trials.
“Shein leverages customer data and search history with the help of artificial intelligence (AI) algorithms to discern emerging fashion preferences and patterns,” the document states. “With this quick information, Shein can start manufacturing and delivering apparel to market ahead of competitors.”
As reported by Dazed, big box designers have also targeted Shein in lawsuits that have mostly been quietly settled out of court. These companies include Levi Strauss, the maker of Dr. Martens, and Ralph Lauren, among others.
Last year, two artists on TikTok also complained against Shein claiming that their work was stolen without compensation.
The lawsuit further lists other “societal threats[s]asked by Shein, including environmental damage, sweatshop working conditions and child safety, while pointing out that the company’s ‘shell game’ of one business model could spread to others industries.
“This is a monumental case that has the potential to positively impact the global art and design communities that have long been at odds with Shein,” said Jeff Gluck, attorney for the artists in the latest trial, in an email to Artnet News.
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