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The World Customs Organization and International Chamber of Commerce estimate that seven to eight percent of all world trade each year involves counterfeit goods, resulting in lost sales of $512 billion globally and $200-250 billion in the United States. [1]  Blockchain, commonly known as a core component of bitcoin in the finance sector, made its runway debut at the Shanghai Fall 2016 Fashion Week and may prove to be an effective tool against counterfeiting and diversion.
Continue Reading Blockchain Walks the Runway As The New FashTech Fashion Tool

In its opinion in In re California Naturel, Inc., the Federal Trade Commission held that the California Naturel, Inc. advertising promoting its “all natural” sunscreen on its website as containing “only the purest, most luxurious and effective ingredients found in nature” violated Section 5 and 12 of the FTC Act.  The opinion, written by Chairwoman Edith Ramirez, noted that California Naturel admitted that eight percent of its sunscreen formula is in fact dimethicone, a synthetic ingredient.
Continue Reading FTC Grants Summary Judgment Against California Naturel, Inc. Falsely Advertising “Sun Blocked” Sunscreen Products

From Apple Watches to Fitbits, the market for wearable technology has steadily increased over the years.  In 2015, just under 50 million wearable devices were shipped.[1]  Additionally, the wearables market is expected to increase 35% by 2019.  As the wearable technology trend increases, many companies are beginning to view wearables as a way to efficiently increase both employee health and productivity.[2]
Continue Reading Punching the Clock in the 21st Century: Could Your Bonuses and Promotions Be Determined By Wearable Tech?”

Recent efforts by the Federal Trade Commission (“FTC”) to regulate the use of native advertisements — a popular and growing advertising tool– have resulted in the first enforcement action. On March 15, 2016, the FTC settled charges brought against New York retailer Lord & Taylor, LLC (“Lord & Taylor”), arising from Lord & Taylor’s March 2015 social media campaign targeted at 18 to 35-year old women its launch of its new Design Lab Collection, signaling the FTC’s intention to more heavily regulate the use of social media influencers to advertise fashion apparel.  The FTC complaint alleged that Lord & Taylor promoted the launch of the Design Lab Collection and a featured Design Lab paisley dress design through native advertising, including a Lord & Taylor-sponsored article in the online publication Nylon, and a Nylon Instagram post that was approved by Lord & Taylor.  The FTC complaint alleged that Lord & Taylor paid fifty online fashion “influencers” to post Instagram pictures of themselves wearing the same Design Lab paisley dress.  A copy of the consent order and complaint are attached. The exhibits to the complaint can be found here.
Continue Reading The FTC Cracks Down On March 2015 Lord & Taylor Social Media Launch: Native Advertisers Beware!

In the wake of 2016, Jay-Z faces an $18 million lawsuit for his failure to publicly appear and promote his signature fragrance line, as he was contractually obligated. 2009 marked the start of a budding licensing relationship between Parlux Fragrances and Hova, wherein Parlux courted the rapper with common stock offers and warrant transfers to win his affections for a fragrance deal. Finally in 2012, Mr. Carter agreed to an exclusive license to his name and likeness for Parlux’s use in fragrances and other beauty products. The successful 2013 launch of the GOLD Jay-Z fragrance promised growth for the future relationship. However, things began to smell sour once Jay declined to meet his contractually obligated minimum number of public appearances in support of the fragrance and Parlux sought Jay-Z’s assistance in developing flanker fragrances to no avail. Parlux cites a number of declined appearances and attempts to communicate with Jay-Z and his representatives, which they claim are the basis for three separate counts of breach of contract and one count of breach of implied duty of good faith and fair dealing.[1] Parlux seeks rescission, which entails the return of 300,000 shares of Perfumania common stock, 800,000 Perfumania warrants, and $2 million in guaranteed royalties, along with a declaratory judgment, and $18 million in damages.[2] The New York Supreme Court is left to decide whether or not these communication breakdowns amount to one of Jay-Z’s 99 problems, this one with an $18 million price tag.
Continue Reading He’s got 99 Problems, But a Breach Might NOT be One

The European Court of Justice (ECJ) has struck down the 15-year-old “Safe Harbor” agreement that permitted companies operating in Europe to transmit personal user data to the United States, as long as the U.S. ensures an adequate level of data protection at the company and certifies that it will abide by seven EU data privacy principles regarding notice, choice, onward transfer, security, data integrity, access, and enforcement. The case, entitled Maximillian Schrems v. Data Protection Commissioner, was decided on October 6, 2015 and has an immediate effect on European courts. See here.
Continue Reading EU Court Rejects “Safe Harbor” Agreement Permitting Customer Data Transfers to U.S.

In 2014, the United States Court of Appeals for the Third Circuit ruling in FTC v. Wyndham Worldwide Corporation agreed to hear an immediate appeal on two issues: “whether the FTC has authority to regulate cybersecurity under the unfairness prong of § 45(a); and, if so, whether Wyndham had fair notice its specific cybersecurity practices could fall short of that provision.” On August 24, 2015 the Third Circuit affirmed the decision of the District Court and denied Wyndham’s motion to dismiss the complaint.
Continue Reading FTC v. Wyndham: The Third Circuit Recognizes FTC Authority to Regulate Commercial Cyber Security Practices

Spring 2015 New York Fashion Week
February 17, 2015

Fashion Insider Interview: A Behind-the-Scenes Perspective from Bruce Weber’s and Nan Bush’s Little Bear

  • Robert Darwell, Sheppard, Mullin, Richter & Hampton LLP
  • Producer Jeannette Shaheen, Little Bear, Inc.

A Fashionista’s Guide to Competition and Cartel Laws

  • Daniel Brown, Sheppard, Mullin, Richter & Hampton LLP

Practical Approaches from the US and EC to International Conundrums of Confidentiality: What You Need to Know About Cross-Border Attorney-Client and Work Product Privileges and E-Discovery

  • Theodore Max, Sheppard, Mullin, Richter & Hampton LLP
  • Bryony Cain, Bird & Bird LLP

Continue Reading Facing a Blizzard of Legal Challenges as In-House Counsel

Wacoal America and Norm Thompson, both manufacturers of women’s shapewear, recently entered into consent orders to pay sums of $230,000 and $1.3 million, respectively, and agree to  not make any false and misleading future claims that their products cause weight loss, fat loss or eliminate cellulite as the result of FTC enforcement action as the result of making unsubstantiated weight-loss claims.  This is yet another reminder that any claims made in advertisements or marketing materials as to weight-loss, fat-loss or cellulite elimination must be substantiated by a scientific study or the manufacturer may face an FTC action and potentially substantial fines.
Continue Reading FTC Takes Action Against Unsubstantiated Caffeine-Infused Shapewear Weight-Loss Claims

The United States government in conjunction with the Bloomberg Philanthropies held the first ever US-Africa Business Summit on August 4–6, 2014 to discuss trade opportunities in Africa. A primary focus of discussion at the summit was the Africa Growth and Opportunity Act (AGOA), a regulation passed in 2000 to implement trade benefit provisions for sub-Saharan Africa. A major benefit of AGOA is allowing duty-free import of textile and apparel materials from beneficiary countries in Africa to the United States. This provision is currently set to expire on September 30, 2015 however, stakeholders in the textile and apparel industry, both in the US and Africa, are now advocating for its extension.
Continue Reading Out of Africa: Business Summit Focuses On Renewal of AGOA