Fashion Counsel with Anthony V. Lupo

Arent Fox's fashion law blog offers news, analysis, and insights for the industry from fashion attorney Anthony Lupo.

Fashion Counsel with Anthony V. Lupo
Consumer Product Safety
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CPSC Public Meeting on Children's Sleepwear Flammability

On December 1, 2016, CPSC’s Office of Compliance, under the leadership of CPSC’s Mary Toro (Director, Office of Compliance, Regulatory Enforcement), held a comprehensive full day seminar on the laws, regulations, and rigorous flammability testing requirements applicable to children’s sleepwear.

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Consumer Product Safety
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FDA to Begin Posting Adverse Event Report Data for Foods and Cosmetics
On December 7, 2016, the Food and Drug Administration published a Notice in the Federal Register announcing that its Center for Food Safety and Applied Nutrition will begin publishing data extracted from adverse event reports the Agency has received for conventional foods, dietary supplements and cosmetics. Until now, such adverse event report data has only been publicly available by submission of a Freedom of Information Act request to the Agency. FDA has stated it is providing adverse event data to increase transparency and improve access to such data for consumers, health care providers, researchers, and academics.

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International Corporate, Importation & Immigration
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What the 2016 Election Means for Your Industry
The election of Donald Trump to be the 45th President and the retention of majorities in the House and Senate by the Republican Party were a surprise to most, but in the tradition of our country, the days after are a time for organizing to do the people’s business. From large corporations to small nonprofits, from urban centers to rural communities, the 2016 elections will have an impact across all sectors of the economy and globally as well. 

Arent Fox's Government Relations practice of attorneys, former elected officials, and political insiders have published a forecast for the legislative and regulatory agenda in 2017 that offers insight into how it could impact key industries and sectors.

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Labor & Employment
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California Paystubs Don’t Have to Include Vacation or PTO Values – But Beware

The California Court of Appeal has held that employers’ itemized wage payment statements do not have to include the monetary value of an employee’s accrued vacation or paid time off (PTO). The decision in Soto v. Motel 6 Operating, L.P. held that, although such amounts are “wages” under California law, an employer does not have to itemize the value of the balance due until the end of employment. To avoid any mistake, however, employers must be mindful that the California paid sick leave law now does require employers to list an employee’s available number of hours of unused PTO or sick leave.
 

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Intellectual Property, Trademark
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Breaking (Up) Bad: Watch-outs for Brand Owners Faced with Ex-Licensee's Trademark Use

A series of recent decisions have heightened the standard for obtaining preliminary injunctive relief for trademark infringement. This trend presents unique challenges for brand owners seeking to enjoin unauthorized “holdover” use of a trademark by former franchisees or licensees. This situation commonly arises when a franchisee or licensee continues using a franchisor or licensor’s trademarks following termination of a franchise or license agreement.
 
Under the test for preliminary injunctive relief in most jurisdictions, a plaintiff must establish:

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Press Releases, Intellectual Property, Copyright
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Fashion Law Institute and Arent Fox File Amicus Brief on Behalf of Designers in Supreme Court Copyright Case

New York, NY — On September 21, the Fashion Law Institute at Fordham filed an amicus brief with the Supreme Court of the United States in the matter of Star Athletica LLC v. Varsity Brands, Inc., in support of continuing copyright protection for designs incorporated into useful articles, including the cheerleader uniform designs at issue in the litigation.
 

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International Corporate, Importation & Immigration
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US Importers, Managing Director, and Wholesale Customer Face Monetary Damages in Two Recently Unsealed False Claims Act Cases

The False Claims Act imposes liability on persons and companies who defraud the government of monies, whether it is by receiving monies based on false statements or material omissions, or avoiding the payment of monies through false statements or omissions. The statute permits both private parties (whistleblowers) and the government to bring actions against the perpetrators of such fraud in order for the government to collect damages, a portion of which will be paid to the whistleblower, if one is involved.

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Labor & Employment, Class Action Defense
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Please Wait While I Check Your Bag: California Court Certifies Nike Bag-Check Class Action & Converse Workers Seek Class Certification in Similar Case

Long lines and waiting for security inspections are the new normal not only at airports and stadiums, but also at office buildings and theatres—just to name a few places. According to the plaintiff in Rodriquez v. Nike Retail Services, Inc., N.D. Cal. Case No. 5:14-cv-01508, he and other Nike retail employees also had to wait for security inspections when they left for breaks or after their shifts at Nike’s retail stores. The plaintiff claims that he and other employees were required to wait for such inspections after clocking out, and he and a class of Nike retail employees should have been, but were not, paid for the time spent waiting. 
 
On August 19, 2016, the Northern District of California granted the plaintiff’s motion for class certification and certified a class of all current and former non-exempt Nike retail store employees from February 25, 2010, to the present. Opposing class certification, Nike made three overarching arguments:

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Corporate
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The New Partnership Audit Rules—When to Amend Your Partnership or LLC Agreement

The new partnership tax audit rules enacted by Congress on November 2, 2015 could have a dramatic impact on partnerships and their partners (including limited liability companies taxed as partnerships (“LLCs”) and their members). The new rules will apply to audits of tax returns for tax years beginning after December 31, 2017. 

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Consumer Product Safety
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FDA Enforcement Against Cosmetics Continues at Record Pace in 2016
  • FDA has issued a record high 19 Warning Letters to cosmetics/personal care product companies in 2016.
  • Companies should promote cosmetics on the Internet with the understanding that FDA may be actively monitoring company websites.
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ABOUT ARENT FOX LLP

Arent Fox LLP, founded in 1942, is internationally recognized in core practice areas where business and government intersect. With more than 350 lawyers, the firm provides strategic legal counsel and multidisciplinary solutions to clients that range from Fortune 500 corporations to trade associations. The firm has offices in Los Angeles, New York, San Francisco, and Washington, DC.