News you can use from around the fashion industry:
A recent state court decision in California could prove a major headache for online retailers that engage in comparative price advertising. Although the decision — People of the State of California v. Overstock.com — is not binding precedent and its future on appeal is far from clear, the decision suggests that retailers may be forced to adopt more rigorous internal standards when engaging in comparative price advertising.
In Fashion Counsel's first Executive Series interview, Anthony Lupo spoke with international luxury fashion house Escada's General Counsel, Lars Schmidt. They discussed legal issues that Escada routinely faces while operating as a leading apparel brand in more than 60 markets, largely concentrated in North America, Europe, and Asia.
In a recent decision from the US Court of Appeals for the Ninth Circuit, Lee v. Intelius Inc., 9th Cir., No. 11-35810, 12/16/13, the Court held that an online consumer could not be compelled to arbitrate a class action because the essential elements of a contract were not present.
Welcome to Fashion Counsel's Executive Series, a new segment offering analysis and key points of law impacting Fashion executives. Fashion Counsel host Anthony Lupo, partner and leader of the firm’s Fashion, Luxury Goods & Retail practice, will periodically conduct one-on-one interviews with fashion CEOs and business leaders. This week, Tony sits down with Lars Schmidt of Escada to discuss some of the legal issues facing today's global brands.
In January 2013, Kelle Azzopardi, a former Giorgio Armani Corp. executive assistant, sued the Italian fashion company in New York State Court, alleging she had been sexually harassed by a female Armani executive, Laura Giulini, and fired in retaliation for complaining about it. In that lawsuit, Azzopardi said she was let go after reporting to the company’s human resources department that she was “incessantly verbally and sexually” harassed by Giulini, who also allegedly exposed herself to Azzopardi.
On January 9, 2014, the U.S. District Court for the Southern District of New York preliminarily approved a settlement between Elite Model Management Corporation (Elite) and a proposed class of unpaid interns who worked for Elite during Fashion Week. Davenport v. Elite Model Management Corp. No. 1:13-cv-01061-AJN (S.D.N.Y. Jan. 9, 2014). The group of interns will be paid $450,000.
The complaint, which was originally filed in February 2013, alleged that Elite knowingly misclassified the workers as unpaid interns instead of paid employees, and failed to pay them minimum wages and overtime compensation under New York Labor Law and the Fair Labor Standards Act (FLSA). The interns claimed they performed work for the benefit of Elite, including preparing modeling books of the agency’s clients and chaperoning models to advertising print and media shoots. Internship programs historically have been prevalent in the fashion industry.
As retail and fashion companies expand into foreign markets, it's important for them to note factors that can pose dangers to their companies in relation to the FCPA.
In the first of a two-part episode of Fashion Counsel, Anthony Lupo talks with partner Stephen G. Larson about what fashion companies need to know about the FCPA.
As part of a decade-long dispute in the World Trade Organization (WTO) involving US cotton subsidies, Brazil is again threatening significant trade retaliation against a wide variety of US goods and intellectual property rights. The proposed retaliation would substantially increase tariffs on US exports across various sectors and industries, and would suspend or restrict US intellectual property rights in Brazil. If enacted, the retaliatory measures could have a devastating impact on US businesses.
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