E-Commerce, Online Distribution & Fulfillment
Worldwide e-commerce sales are anticipated to increase nearly 21% to $1.592 trillion in 2015. More fashion brands will consider omni-channelling to use technology to deliver their products across a variety of channels. These opportunities allow companies to grow, but also give rise to new legal hurdles.
On February 17, Anthony Lupo, head of Arent Fox’s Fashion Law practice will present “Current Legal Trends in the Footwear, Fashion, Accessory, and Retail Sector” during MAGIC, in Las Vegas. The discussion will focus on issues in class-action lawsuits, omni-channeling, social media, and global data protection in the fashion sector. The presentation will provide best practices and lessons learned while in the trenches.
What’s the News?
Fashion designers’ retail pricing and promotional strategies have quickly evolved in the last decade, with Internet channels dramatically altering distribution and sales tactics. Many designers craft tactics to carefully differentiate their contract terms among retailers, from high-end, brick-and-mortar stores to Internet retailers and others.
FTC Brings First Case Under Federal Negative Option Law
What’s Making News?
The Federal Trade Commission (FTC) recently brought its first case under the Restore Online Shoppers’ Confidence Act (ROSCA), a 2010 federal law that prohibits online sellers from charging consumers in an Internet transaction unless the seller has clearly disclosed all material terms of the transaction and obtained consumers’ express informed consent.
One of the world’s most consumer protective spam laws recently went into effect in Canada on July 1, 2014, and many companies operating outside of Canada are learning that the law also impacts them because of how broadly it is drafted.
Attention West Hollywood (WeHo) shoppers, new furs are no longer for sale in WeHo! A federal court recently dismissed constitutional challenges to the City of West Hollywood’s (WeHo) city-wide ban prohibiting the sale of fur products (Ordinance No. 11-877) brought by Mayfair House, Inc., a luxury retailer of clothing products including fur-lined parkas and shearling gloves and slippers.
What Made News?
In a recent letter, the Federal Trade Commission (FTC) alleged that a promotional contest on Pinterest violated Section 5 of the FTC Act. Although the FTC did not take any direct enforcement action against Cole Haan, the letter forced Cole Haan to discontinue the contest and is one of the first instances in which the FTC has offered an opinion about what it takes to keep social media contests and promotions on the right side of federal advertising laws.
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.
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.