Category Archives: Fashion and Retail

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Seller Beware When Using Third-Party Services to Manage Returns

By Gonzalo E. Mon and David H. Evans on Posted in Fashion and Retail
The Wall Street Journal recently published an article discussing a growing practice among retailers who use third-party services to identify fraudulent returns. These services will inform retailers when they think a return is fraudulent, and some retailers will reject returns based on this information, notwithstanding what is in their return policies. The article presents an … Continue Reading

Michaels Stores Inc. Agrees to Pay $1.5 Million CPSC Civil Penalty

By Christie Grymes Thompson on Posted in Consumer Product Safety, Consumer Protection, Fashion and Retail
Last week, the Department of Justice (“DOJ”) announced that Michaels Stores Inc. has agreed to pay $1.5 million in civil penalties to settle allegations that Michaels failed to file a timely report about a safety hazard associated with a large glass vase that Michaels sold. In 2015, DOJ filed a complaint on behalf of the … Continue Reading

TINA Has Eyes on Goop

By John E. Villafranco on Posted in Advertising, Advertising Litigation, Dietary Supplements, Fashion and Retail, Food and Drug
The consumer advocacy non-profit Truth in Advertising, Inc. (TINA.org) has set its sights on Goop, the lifestyle brand launched by Gwyneth Paltrow.  In a complaint filed earlier this week with the Santa Clara and Santa Cruz County California district attorneys, both members of the California Food and Drug and medical Device Task Force, TINA alleges … Continue Reading

Comparison Pricing Victory for Ross Stores in California

By Katie Townley and Christie Grymes Thompson on Posted in Advertising, Advertising Litigation, Class Actions, Fashion and Retail
On August 2, 2017, the U.S. District Court for the Central District of California dismissed a putative class action lawsuit against Ross Stores that accused the discount retailer of misleading promotional pricing practices. The lawsuit stemmed from February and May 2015 purchases by the two lead plaintiffs of items bearing price tags with a selling … Continue Reading

V-I-C-T-O-R-Y for the Fashion Industry: SCOTUS Establishes Uniform Test for Protection of Artistic Works Applied to Apparel

By Andrea L. Calvaruso and Ana Correa on Posted in Fashion and Retail, Intellectual Property
The overall design (such as the shape and cut) of a garment, bag or shoe is not protectable under current U.S. Copyright law because such items are considered “useful articles.” However, Section 101 of the Copyright Act provides protection for the “pictorial, graphic or sculptural features [of a useful article] that can be identified separately … Continue Reading

Oregon Attorney General Announces $545,000 Settlement with Retailer

By Kelley Drye on Posted in Advertising, Dietary Supplements, Fashion and Retail, Food and Drug
The Oregon AG recently announced a $545,000 settlement with the Vitamin Shoppe over allegations that the store violated Oregon state law by selling dietary supplements containing ingredients that FDA has deemed unsafe or unlawful. The new settlement agreement places significant burdens on the Vitamin Shoppe to monitor developments on ingredient status. The burdens are the same regardless of whether the … Continue Reading

More Regulators Focus on Price Comparisons

By Gonzalo E. Mon on Posted in Consumer Protection, Fashion and Retail, State Attorneys General
Yesterday, the Virginia Attorney General announced that it reached a settlement with Hobby Lobby over the retailer’s price comparisons. According to the press release, Hobby Lobby advertised discounts compared to “other sellers,” but failed to disclose the basis of comparison, thus making it difficult for consumers to determine whether they were getting a good deal. … Continue Reading

Ad Law News and Views Newsletter

By Kelley Drye on Posted in Advertising, Antitrust, Class Actions, Consumer Protection, Dietary Supplements, Enforcement, Fashion and Retail, Federal Communications Commission, Federal Trade Commission, Food and Drug, Kelley Drye, Legislative Developments, NAD, Privacy and Information Security, Regulatory Developments, Social Media, State Attorneys General
Did you know Kelley Drye’s Advertising Law practice produces a newsletter, Ad Law News and Views, every two weeks to help you stay current on ad law and privacy matters? Click here to access our Publication Sign Up and select Advertising and Marketing to subscribe. Find contents from the latest issue below: Click here to view with … Continue Reading

Announcing the Advertising and Privacy Law Webinar Series

By Kelley Drye on Posted in Advertising, Advertising and Privacy Law Summit, Advertising Litigation, Agreements, Antitrust, Class Actions, Consumer Financial Protection, Consumer Product Safety, Consumer Protection, Enforcement, Fashion and Retail, Federal & State Regulatory, Federal Communications Commission, Federal Trade Commission, Food and Drug, Internet of Things, Legislative Developments, Marketing & Media Transactions, Mobile Marketing, NAD, Native Advertising, Privacy and Information Security, Real Time Marketing, Regulatory Developments, Social Media, State Attorneys General
Please join Kelley Drye in 2017 for the Advertising and Privacy Law Webinar Series. Like our annual in-person event, this series will provide engaging speakers with extensive experience and knowledge in the fields of advertising, privacy, and consumer protection. These webinars will give key updates and provide practical tips to address issues faced by counsel. … Continue Reading

NAD Decision on Savings Claims Holds Valuable Lessons

By Gonzalo E. Mon on Posted in Advertising, Fashion and Retail, NAD
The NAD recently issued a decision involving savings claims that holds some valuable lessons for advertisers. Lowes ran TV ads advertising that consumers could get “20% off appliances $396 or more.” Not all appliances in that price range were discounted at 20%, though, and a consumer complained to the NAD, arguing that the retailer had … Continue Reading

CFPB Issues Final Rule to Regulate Prepaid Products; Prepaid Providers Given One Year to Comply

By Dana B. Rosenfeld, Alysa Zeltzer Hutnik and Donnelly L. McDowell on Posted in Consumer Financial Protection, Fashion and Retail, Gift Cards
Yesterday the CFPB released a final rule that will impose a variety of consumer protection requirements on prepaid products, such as requiring specified disclosures before product purchase and compelling financial institutions to limit consumer losses for lost or stolen cards.  The CFPB had previously released a proposed rule, which we discussed here, and the final … Continue Reading

FTC Requests Auditors’ Data on PCI Data Security Assessments

By Alysa Zeltzer Hutnik and Crystal N. Skelton on Posted in Credit Cards, Fashion and Retail, Federal Trade Commission, Merchant Billing & Payment, Privacy and Information Security
Earlier this week, the FTC issued orders to nine credit card and payment security auditors in an effort to gain insight into data security compliance auditing and its role in protecting consumers’ information and privacy. The orders contain detailed questions concerning the assessment process for Payment Card Industry Data Security Standard (“PCI DSS”) compliance, including the policies … Continue Reading

Kohl’s Kicks Putative Class Action Suit Alleging Deceptive Sale Prices

By James B. Saylor on Posted in Advertising Litigation, Class Actions, Fashion and Retail
On February 1, 2016, the U.S. District Court for the District of Massachusetts dismissed  a consumer class action alleging that Kohl’s Department Stores advertises false sale prices. The plaintiff in Mulder v. Kohl’s Department Stores, Inc., 15-cv-11377 (D. Mass.), asserted causes of action for fraud, breach of contract, unjust enrichment, and violations of the Massachusetts … Continue Reading

Lawsuit Over Website Accessibility Highlights Importance of Compliance

By Gonzalo E. Mon and Crystal N. Skelton on Posted in ADA, Class Actions, Fashion and Retail
ADA KeyboardLast month, Reebok was hit with a proposed class action alleging that the company’s website violates the Americans with Disabilities Act because it is not accessible to the blind. The plaintiffs argue that Reebok.com contains “thousands of access barriers” that make it difficult —if not impossible — for blind customers to use the site. Because … Continue Reading

Office Depot Agrees to Pay $3.4 Million CPSC Civil Penalty

By Christie Grymes Thompson on Posted in Consumer Product Safety, Fashion and Retail
On May 27th, the Consumer Product Safety Commission (“CPSC”) announced that Office Depot agreed to pay a $3.4 million civil penalty for allegedly failing to report potential safety issues for two models of office chairs. According to the CPSC, Office Depot received 33 reports concerning the Quantum model and 153 concerning the Gibson model, with … Continue Reading

California Enforces Transparency in Supply Chains Act

By Laura Siegel Rabinowitz on Posted in Fashion and Retail
The Attorney General of California has recently sent letters to more than 1,700 companies notifying them that the State is enforcing the California Transparency in Supply Chains Act, which became effective in 2012.  The Act requires large retailers and manufacturers doing business in California to disclose “conspicuously” on its websites “efforts to eradicate slavery and … Continue Reading

FTC Settles with Retail Tracking Company that Made Privacy Policy Promises It Couldn’t Keep

By Alysa Zeltzer Hutnik, Dana B. Rosenfeld and Katie Townley on Posted in Fashion and Retail, Federal Trade Commission, Privacy and Information Security
Last week, the Federal Trade Commission announced its first settlement with a retail tracking company, resolving allegations that Nomi Technologies, Inc., a micro-location platform that provides analytics services to retailers through its product “Listen,” failed to abide by several promises it made in its privacy policy. Under the terms of the agreement, Nomi is prohibited … Continue Reading

CFPB Proposes Rule on Prepaid Products to Extend Certain Credit Requirements and Mandate Disclosures

By Donnelly L. McDowell on Posted in Fashion and Retail
The Consumer Financial Protection Bureau released last week a proposed rule that would impose an array of new requirements on prepaid accounts. The proposed new definition of “prepaid account” would include general purpose reloadable cards, electronic or mobile accounts that can store funds such as PayPal accounts, payroll cards, and certain government benefit cards, but … Continue Reading

The Year of the Breach: California Attorney General Releases 2013 Data Breach Report

By Katie Townley on Posted in Fashion and Retail, Privacy and Information Security
On Tuesday, the California Attorney General released the second annual data breach report, summarizing the 167 data breaches reported to the Attorney General’s office in 2013, and providing privacy and security recommendations for businesses. According to the report, the retail, finance, and healthcare industries reported over 60 percent of the 167 breaches, over half of … Continue Reading

Retailers Face Legal Challenges Over Advertising Prices

By Gonzalo E. Mon on Posted in Fashion and Retail
Retailers have had a tough year when it comes to advertising prices. In January, a California court issued a multimillion dollar penalty against Overstock.com, after determining that the company advertised discounts in a misleading manner. Since then, retailers across a range of industries have been dragged into costly lawsuits and regulatory investigations involving similar issues. … Continue Reading

FTC Asks (Too?) Much of Retailers

By Kelley Drye on Posted in Advertising, Fashion and Retail, Federal Trade Commission
The FTC recently announced that it sent warning letters to five “major retailers” selling athletic mouth guards on their websites. According to the FTC, the retailers’ websites included concussion claims that may be deceptive. The FTC urged the recipients of the letters to ensure that all concussion claims appearing on their sites are backed by … Continue Reading
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