https://www.npr.org/2023/07/15/1187852963/shein-rico-racketeering-lawsuit Accessibility links * Skip to main content * Keyboard shortcuts for audio player * Open Navigation Menu * NPR logo * * * NPR Shop * > Close Navigation Menu * Home * News Expand/collapse submenu for News + National + World + Politics + Business + Health + Science + Climate + Race * Culture Expand/collapse submenu for Culture + Books + Movies + Television + Pop Culture + Food + Art & Design + Performing Arts + Life Kit + Gaming * Music Expand/collapse submenu for Music + Tiny Desk + #NowPlaying + All Songs Considered + Music Features + Live Sessions * Podcasts & Shows Expand/collapse submenu for Podcasts & Shows Daily + [morning-ed] Morning Edition + [we_otheren] Weekend Edition Saturday + [we_otheren] Weekend Edition Sunday + [all-things] All Things Considered + [fresh-air] Fresh Air + [up-first] Up First Featured + [takingcove] Taking Cover + [ltar_s2_ti] Louder Than A Riot + [ibam_tile-] It's Been a Minute + [life-kit_t] Life Kit + More Podcasts & Shows * Search * * NPR Shop * NPR Music NPR Music * Tiny Desk * #NowPlaying * All Songs Considered * Music Features * Live Sessions * About NPR * Diversity * Organization * NPR Network * Support * Careers * Connect * Press * Ethics Shein violated the RICO Act by stealing people's designs, a lawsuit says Three artists are accusing the e-commerce giant of selling exact copies of their designs on its website. Shein has faced similar accusations before. Business Shein steals artists' designs, a federal racketeering lawsuit says July 15, 20236:02 AM ET By Ayana Archie [untitled-d] Enlarge this image Shein is accused in a lawsuit by three independent designers of stealing and making exact copies of their works to sell on its website. On the left is Larissa Martinez's design, and on the right is a Shein product. Melanie Wilbur/Erikson Law Group hide caption toggle caption Melanie Wilbur/Erikson Law Group Shein is accused in a lawsuit by three independent designers of stealing and making exact copies of their works to sell on its website. On the left is Larissa Martinez's design, and on the right is a Shein product. Melanie Wilbur/Erikson Law Group Massive e-commerce company Shein is being accused in a new lawsuit of violating the federal anti-racketeering act, RICO, by copying independent designers' works. Three artists -- Krista Perry, Larissa Martinez and Jay Baron -- allege Shein made exact copies of their work without their knowledge, behavior that is part of a larger pattern of unethical business practices, including decimating the environment, fostering unsafe working conditions and avoiding paying taxes. Shein invited influencers on an all-expenses-paid trip. Here's why people are livid Business Shein invited influencers on an all-expenses-paid trip. Here's why people are livid "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," their lawyers allege in a complaint filed Tuesday in a federal district court in California. Shein did not immediately respond to a request for comment. Perry is a designer and illustrator based in Massachusetts, and made a copyrighted graphic design with the stylized words "make it fun" on a pink background. Shein began selling it as wall art. Perry then contacted the company through its site and Shein offered to pay her $500, which she refused, the complaint says. [untitled-d] Enlarge this image On the left is illustrator Krista Perry's design, and on the right is Shein's. Melanie Wilbur/Erikson Law Group hide caption toggle caption Melanie Wilbur/Erikson Law Group On the left is illustrator Krista Perry's design, and on the right is Shein's. Melanie Wilbur/Erikson Law Group The company reached out to her the following year asking her if she would like to contribute to a capsule collection for aspiring artists, and offered her "what sounded like significant money to be made," the complaint says. "How dare you contact me after my artwork has been stolen and the hard time I was put through with the people at Shein to resolve it," Perry replied. "This email disgusts me. Shein and [its sister company] Romwe have stolen artwork from both myself and many of my hardworking friends and colleagues." The lawsuit also accuses Shein of stealing a floral blanket design by Perry. [untitled-d] Enlarge this image On the left is artist Jay Baron's design of an embroidered patch, and on the right is a Shein product. Melanie Wilbur/Erikson Law Group hide caption toggle caption Melanie Wilbur/Erikson Law Group On the left is artist Jay Baron's design of an embroidered patch, and on the right is a Shein product. Melanie Wilbur/Erikson Law Group Shein also allegedly stole one of Baron's designs, an embroidered name tag-style patch that says, "Hello I'm Trying My Best" and Martinez's design of a pair of overalls with orange daisies on them. Baron is the founder of Retrograde Supply Co., which sells stickers and patches, while Martinez is the owner and CEO of Miracle Eye, a Los Angeles-based clothing company that she operates with her mother and aunt. The RICO, or Racketeer Influenced and Corrupt Organizations, statute was enacted in 1970 to eliminate "the infiltration of organized crime and racketeering into legitimate organizations operating in interstate commerce," the Department of Justice says. How Shein became a fast-fashion behemoth The Indicator from Planet Money How Shein became a fast-fashion behemoth Racketeering is an umbrella term for crimes committed in business dealings, such as murder, kidnapping, gambling, arson, robbery, bribery and extortion. The designers have suffered "substantial damage to [their businesses] in the form of diversion of trade, loss of profits, and a diminishment in the value" of their products and reputations, the complaint says. Shein Distribution Corp., Roadget and Zoetop are named as defendants in the suit. Shein Distribution is based in Delaware. Roadget and Zoetop, based in Singapore and Hong Kong, respectively, own Shein's worldwide trademarks, and own and operate its mobile apps and websites. The lawyers say Shein's business model intentionally make it hard to pin down a defendant, as the company is a "decentralized constellation of entities, designed to improperly avoid liability." Shein has faced several accusations of stealing designs in the past few years, including a crochet sweater, an enamel pin and earrings. But it can be difficult to settle lawsuits in the fashion industry because companies cannot copyright "useful things, at least not in their entirety," Julie Zerbo, a lawyer and fashion blogger, told NPR in 2021. Why Indie Brands Are At War With Shein And Other Fast-Fashion Companies Business Why Indie Brands Are At War With Shein And Other Fast-Fashion Companies Clothing is deemed a utility item, and therefore does not have as many protections, she said. As a result, lawyers can be hesitant to take on these types of cases, because "most lawyers would have accepted any minimal sum as compensation due to uncertainty about how to properly seek more appropriate remedies," the complaint says. Jeff Gluck, an attorney representing the designers in Tuesday's lawsuit, said their law firm is currently fighting similar cases, which led to Perry, Martinez and Baron reaching out. "We hope for a successful outcome that will have a positive impact on the global art and design communities that have long been at odds with Shein and the endless infringement allegations," he said. * Shein * RICO * lawsuit * Facebook * Flipboard * Email Read & Listen * Home * News * Culture * Music * Podcasts & Shows Connect * Newsletters * Facebook * Instagram * Press * Public Editor * Corrections * Contact & Help About NPR * Overview * Diversity * NPR Network * Accessibility * Ethics * Finances Get Involved * Support Public Radio * Sponsor NPR * NPR Careers * NPR Shop * NPR Events * NPR Extra * Terms of Use * Privacy * Your Privacy Choices * Text Only * Sponsor Message Become an NPR sponsor