Legal

Bad news for Barnes & Noble this Christmas: the SEC thinks the bookseller's accounting practices may have been naughty. In Barnes & Noble's quarterly report filed last Thursday, the company noted that the SEC "notified the Company that it had commenced an investigation into: (1) the Company's restatement of earnings announced on July 29, 2013, and (2) a separate matter related to a former non-executive employee's allegation that the Company improperly allocated certain Information Technology expenses between its NOOK and Retail segments for purposes of segment reporting." Lands’ End announced that it's cooperating with the SEC on this matter. 

Under Armour is working to stretch the boundaries of a sportswear maker by branching into tech gadgets and lifestyle accessories. But there are limitations on the Baltimore company's innovations when other companies beat them to the patent. One of Under Armour's newest products became a recent victim of a patent infringement lawsuit

As every business owner knows, it's important to comply with local, state and federal tax laws. But compliance can be a challenge. It's not always easy to figure out what taxes are owed on which items, even if you sell goods in one state only. If you operate in multiple states, that can complicate matters exponentially. Tax rates and taxable item categories can vary considerably from state to state. Cities can also impose their own taxes on certain items and services. And sometimes, tax regulations just don't make much sense, which leads to confusion for business owners who are struggling to accurately collect taxes from customers. Here are seven examples of bizarre taxes found in states:

The U.S. Supreme Court has declined to hear a case brought by Amazon.com and Overstock.com challenging a law in New York state requiring some out-of-state internet retailers to collect sales taxes. The case stems from a statute enacted in 2008 that required online retailers that enlist affiliate marketers who live in New York to collect the tax, even if the merchant has no physical presence within the state. 

The New York City Commission on Human Rights issued a subpoena to Macy's Inc. last week demanding it turn over security policies and theft data. The subpoena gives Macy's and Bloomingdale's, both owned by Macy's Inc., until Dec. 10 to comply, Commissioner Patricia Gatling said. Old Navy and Banana Republic will also get subpoenas, she said.

The question of taxation of online sales stems back to 1992, nearly a decade before e-commerce really began to take off, when the U.S. Supreme Court ruled that retailers didn't have to collect and remit local sales taxes unless they have a substantial connection ("nexus"), such as a physical presence, to the state where the customer lives. Where there was no nexus and sellers didn't collect the tax, the Court ruling left it up to customers to pay the taxes owed in the form of "use" taxes, but most consumers don't understand that obligation and very few bother to comply. This created a loophole for the upcoming world of e-commerce.

Wal-Mart illegally disciplined and fired employees over strikes and protests, the National Labor Relations Board said on Monday. In addition, the board's general counsel said an inquiry found evidence that a Wal-Mart spokesman, appearing on national television, had unlawfully threatened employees who were considering taking part in the protests. While the board authorized the filing of a complaint asserting violations of workers’ rights, no complaint was filed on Monday. The board counsel's office said it would give the parties a chance to reach a settlement.

A federal judge in Denver has denied a motion by Abercrombie & Fitch Co. to stay an order requiring it to make 231 of its Hollister Co. teen-clothing stores accessible to customers in wheelchairs. New Albany, Ohio-based Abercrombie had sought the stay pending its appeal of U.S. District Judge Wiley Daniel's Aug. 16 order that it reconfigure its wheelchair-unfriendly entrances within three years. The stores — about 40 percent of Hollister's U.S. locations — feature a front-porch design at their entrances with steps leading into the store. 

The African-American actor who was arrested while shopping at Macy's in New York City is taking his complaint against the retailer nationwide, the New York Daily News reports. Rob Brown, the star of "Treme," has filed a new 42-page federal class-action lawsuit that says Macy's "policies and practices have left … customers of color feeling victimized, humiliated, traumatized." The lawsuit includes 14 other minority customers who allege their race raised criminal suspicion when they were shopping at the retailer's stores. It seeks a permanent injunction against Macy's to halt its behavior and compensatory and punitive damages for the claimants.

E-commerce and mobile commerce offer retailers the advantages of lower operational costs, a 24/7 sales platform and an expansive customer reach. Although online transactions are subject to many of the same legal principles applicable to physical transactions, they also raise certain new legal issues, particularly contract and data privacy issues.