Retail Trend Spotter

Recently, Colorado’s new $0.27 retail delivery fee went into effect. The fee targets all deliveries by a motor vehicle that have at least one item of taxable and tangible personal property. This new levy impacts both in-state and out-of-state retailers, requiring those entities to register with the Colorado Dept. of Revenue and remit funds to the State.
Continue Reading Colorado’s Retail Delivery Fee

Some apparel, fabric and other goods just became more likely to get stuck at the border if U.S. Customs and Border Protection (“CBP”) suspects they contain cotton from Xinjiang or from companies on a recently published U.S. Government list, or otherwise involve forced labor — whether the brand is aware of it or not. 
Continue Reading Will U.S. Customs Seize Your Presumptively Illegal Apparel? Compliance with the Uyghur Forced Labor Prevention Act

If you are in the business of buying or selling pork-based products, then you have probably heard of California’s Proposition 12.  As it pertains to pork, the law requires that pig confinement systems are large enough to allow the animals to fully lie down, stand up, extend their limbs, and turn around freely.  We previously wrote about the importance and impact of this law, which went into effect starting January 1, 2022.  Recent developments have since put the law on pause and its future into question.
Continue Reading Sow What Now?: Cal. Hispanic Chambers of Commerce et. al. v. Ross et. al., The U.S. Supreme Court, and California’s Proposition 12

A New York federal court recently granted Apple a motion to dismiss a case where an alleged class accused Apple of misleading consumers about the waterproof nature of their iPhones. Apple had several allegedly misleading advertisements about their iPhones, with advertisements stating that the iPhone 11 is “water resistant up to 2 m for 30 min.” The court granted Apple’s motion to dismiss because the plaintiffs did not allege how they were harmed by Apple’s advertisements. Apple’s user manuals and warranties also disclaimed coverage for liquid damage. While the plaintiffs’ phones allegedly malfunctioned due to some amount of water contact,
Continue Reading The Latest Win for Apple: Dismissal of Class Action about iPhones

The Warehouse Quota Notices required by AB 701 are due today, January 31, 2022.

AB 701 requires that employers who have 100 nonexempt employees in any one California warehouse distribution center, or 1,000 nonexempt employees across warehouse distribution centers (including temporary employees), must provide a notice to each warehouse employee subject to a quota, containing:
Continue Reading Reminder to Employers with California Warehouse Employees

The FTC has sent a strong message to industry that it plans to hold companies responsible for using endorsements and customer testimonials that deceive consumers.  The recent warning signals the FTC’s focus on fake reviews and endorsements and the agency’s intent to hold brands and advertising service providers accountable where necessary.  The agency is paying particularly close attention to how brands communicate with customers through third party influencers on social media.
Continue Reading FTC Signals Plan to Enforce Civil Penalties for Deceptive Endorsements

California has issued new guidance for the use of face coverings that will take effect on June 15, 2021.  The guidance impacts retailers and coincides with news that approximately 47% of Californians are now fully vaccinated.  Although the new guidance, published by the California Department of Public Health (“CDPH”), will impact how retailers operate vis-à-vis public patrons, it does not impact employer-employee obligations.  Those obligations are still governed by the Cal/OSHA COVID-19 Emergency Temporary Standards (ETS), and in some cases, the Cal/OSHA Aerosol Transmissible Diseases Standard.  You can find our blog about these standards here.
Continue Reading Face-Covering Considerations for Retailers in a Post-Color Tiered California

In today’s COVID-era, more retailers are offering innovative solutions for customers to shop with minimal brick-and-mortar browsing time. Options to place an order online and pick up your items in the store are extremely popular and will likely stick around post-pandemic. These options are convenient and allow customers to avoid dealing with delayed shipping.
Continue Reading Best Practices for In-Store and Curbside Pickup

New York has enacted a sweeping law that regulates automatic renewal programs (subscriptions) modeled after California’s automatic renewal law.
The law impacts retailers and brands that offer membership and other subscription-based business models, including loyalty programs and rewards programs.
It’s a trend. New York will join 25 other U.S. states that have passed or enhanced existing automatic renewal laws to address consumer advertising, disclosures, consent, and cancelation
The new law (New York Senate Bill 1475) goes into effect on February 9, 2021.
Key requirements:

  • Subscription offer terms must be displayed in more clear and conspicuous type than surrounding


Continue Reading New York Passes Wide-Ranging Automatic Renewal (Subscription Model) Law

California retailers facing a variety of complications from the ongoing COVID-19 pandemic now have one additional obstacle to tackle: compliance with new emergency standards from California’s Division of Occupational Safety and Health (“Cal/OSHA”).  On November 19, 2020, the California Occupational Safety and Health Standards Board unanimously adopted emergency temporary standards on COVID-19 prevention in the workplace.  Prior to the adoption of the emergency standards, general and industry-specific guidance from Cal/OSHA was advisory.  However, the new emergency standards are binding and enforceable against nearly all California employers effective November 30, 2020.  This article sets forth the basic requirements under the new
Continue Reading Cal/OSHA’s COVID-19 Emergency Standards Create New Complications and Costs for Retail Employers

On November 16, 2020, California implemented an accelerated application of its Blueprint for a Safer Economy metrics. Under the Blueprint Framework, every county in California is assigned to a tier based on its test positivity and adjusted case rate. Each tier has its own set of restrictions. Three days later, on November 19, 2020, the state issued a limited Stay at Home Order.
Due to the continued rise of new cases and hospital admissions, on December 3, 2020, the state issued a revised Stay at Home Order. Unlike previous statewide stay at home orders, this new Order
Continue Reading California Department of Public Health Issues New Statewide Stay At Home Order Linked to ICU Bed Capacity

Due to the recent surge in COVID-19 cases, the Los Angeles County Department of Public Health (“L.A. Public Health”) announced that all outdoor and indoor dining at restaurants, breweries and wineries will be restricted, effective November 25, 2020 at 10:00 p.m., while take-out, drive thru, and delivery services may continue (“Order”).
Just last week, L.A. Public Health announced that, effective November 20, 2020 all restaurants, breweries and wineries must limit outdoor capacity to 50%. However, officials advised that if the five-day average of cases reaches 4,000 or hospitalization are more than 1,750 per day, L.A. Public Health will prohibit all
Continue Reading Los Angeles County Restricts In-Person Dining Due to Surge in COVID-19 Cases

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

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.

The Presidential Memorandum dated August 8, 2020 (the “Memorandum”) and IRS Notice 2020-65 (the “Notice”) now allows employers to delay collecting the employee’s portion of
Continue Reading To Defer or Not Defer? IRS Issues Guidance Temporarily Delaying the Collection of Social Security Taxes

Given the prevalence of trade secret misappropriation litigation among members of the fashion, beauty, and retail industry, those in that industry should (1) take care to protect their trade secrets from misuse by others and (2) consider steps to try to reduce the risk of misappropriation claims against them by others.  Both situations – loss of a valuable trade secret and burdensome litigation – can be devastating to a business.  We offer here some potential measures that businesses can take to attempt to avoid such undesirable situations.
A common scenario which gives rise to misappropriation claims is the termination of:
Continue Reading Members Of The Fashion and Retail Industry: Trade Secret Claims Are In Vogue These Days