NY’s Gendered Pricing Law: Will It Curb the Pink Tax

A.J. JacksonJay RamseyBy A.J. Jackson and Jay Ramsey on Posted in Retail

Women often pay more than men for similar goods and services.  A shampoo for men may be nearly identical in chemical makeup to a shampoo for women, but the woman will pay more.  This phenomenon is referred to as the “pink tax” – products marketed to women cost more than their counterparts marketed to men.  Recent data analyzing toys, clothing, personal care products and home health products shows that: (1) products targeted at women are higher-priced than those targeted at men 42% of the time; and (2) of those items more expensive for women, the prices are an average of 7% higher.[1]  The pink tax thus places a direct cost on individuals who purchase products marketed to women. Continue Reading

To Defer or Not Defer? IRS Issues Guidance Temporarily Delaying the Collection of Social Security Taxes

Michael WeissharBy Michael Weisshar on Posted in Coronavirus, Labor and Employment

Most employers are expected to pass on the IRS’ offer to temporarily delay collecting Social Security taxes.  For background, both employers and employees are generally required to pay a Social Security tax at a flat rate of 6.2% (for a total of 12.4%) on all wages.  In a separate article from our Corporate and Securities Blog, we discussed how the CARES Act allows employers to delay paying the employer’s portion of Social Security taxes.

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A Trade War on Two Fronts: U.S. Considers More Tariffs on European Goods

Reid WhittenSarah Ben-MoussaBy Reid Whitten and Sarah Ben-Moussa on Posted in Global Trade, Government Regulations, trademarks

Opening Salvos: The Proposed Tariffs

On June 26, 2020, the U.S. Trade Representative (USTR) published a notice that it is considering new tariffs on exports such as olives, coffee, beer, gin, and trucks coming into the United States from France, Germany, Spain, and the United Kingdom.[1] The list of potential targets also includes various types of bread, pastries, cakes, and other baked products. That new list of goods may face duties of up to 100%, potentially doubling the price of certain goods [2] The announcement caused European stocks to fall, particularly for shares of beverage companies, luxury goods companies, and truck makers. Continue Reading

No Reason to Blush

Abby MeyerBy Abby Meyer on Posted in Cosmetics

*This post originally appeared as an article in the August 2020 edition of Happi Magazine.

Beauty companies face an uptick in alleged false-labeling class actions. Whether the actions are justified or vexatious, one thing is certain: they are expensive to defend. By keeping the following labeling-related litigation trends in mind when considering and reviewing product labels and marketing, beauty companies can, hopefully, avoid becoming a litigation target. Continue Reading

FTC Cracks Down On Deceptive Social Media Campaign By Teami LLC

Ted MaxBy Ted Max on Posted in Advertising

In April 2018, the Federal Trade Commission (“FTC”) wrote to Florida-based Teami LLC (“Teami”), a Florida-based producer of Teami tea and skincare products, reminding it of the requirement set forth in the FTC’s Endorsement Guides, that any material connections, including compensation, between advertisers and internet end-users need to be disclosed “clearly and conspicuously” to consumers.  The letter noted that endorsers should use unambiguous language and consumers should be able to notice the disclosure easily without having to look for it; and that because consumers viewing posts in their Instagram feeds typically see only the first few lines of a larger post unless they click “more,” endorsers should decide any material connection above the name look.[1]  Continue Reading

Protecting Your Inventory and Getting Paid

Ted MaxAlan MartinBy Ted Max and Alan Martin on Posted in Retail

This post originally appeared on the Council of Fashion Designers of America website, CFDA.com.

You’ve worked so hard to get your foot in the door with that prized retailer, striving mightily to please them. They’ve finally supported your line and you just shipped them a big order for Fall 2020. But that same retailer has now filed Chapter 11. What can you do to protect your inventory in the bankruptcy proceeding? Should you continue to do business with the retailer during the bankruptcy? And what can you do to avoid these problems in the future with other retailers? This article will briefly address these questions and provide some basic strategies to help guide the designer/manufacturer in these difficult times. Continue Reading

Fashionista’s Guide to Bankruptcy: What Every Designer Needs to Know to be Protected in Times of Economic Uncertainty

Ted MaxAlan MartinBy Ted Max and Alan Martin on Posted in Retail

This post originally appeared on the Council of Fashion Designers of America website, CFDA.com.

Before the COVID-19 outbreak, fashion retail already faced difficult times with numerous bankruptcies, such as Barneys, Sonia Rykiel, Roberto Cavalli and Diesel.  Now with COVID-19, fashion retail confronts a “perfect storm” — the hurricane of the disruption of brick and mortar retail caused by omnichannel retailing and the Nor’easter resulting from the shutdown of all retail stores and lockdown of consumers in the US.  It is anticipated that retail bankruptcy filings will proliferate in the wake of COVID-19 and, as a result, it is important to have a basic understanding of the bankruptcy process and concepts for fashion businesses, including Chapters 11 and 7, critical vendor status, how to file a claim, and what strategies can be used to sell to an entity once it has filed for bankruptcy. Continue Reading

Sweepstakes or Giveaway? Make Sure Your Advertising Is Clear!

Rachel Tarko HudsonBy Rachel Tarko Hudson on Posted in Advertising

Enter for a chance to win!  Advertising lawyers are forever reminding their clients to be clear that when a promotion is a sweepstakes, messaging needs to be clear that it is a random drawing and not a giveaway.  Recently, fashion brand Draper James reminded us all why that distinction is so important. Continue Reading

Empire State of Mind: Governor Cuomo Proposes Bill to Provide Immediate Assistance for New Yorkers Impacted by COVID-19

James HaysJamie Moelis*By James Hays and Jamie Moelis* on Posted in Coronavirus, Labor and Employment

Update: This story has been updated to reflect the governor’s approval of the bill.

On March 18, 2020, New York Gov. Andrew Cuomo passed a bill guaranteeing job-protection and pay for New Yorkers who have been quarantined as a result of COVID-19. The law is more narrow than the version Gov. Cuomo announced Tuesday, which included a statewide sick program that would have remained in effect beyond the COVID-19 pandemic. The provisions of the legislation are set to take effect immediately. Continue Reading

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