Legal

NRF Criticizes Bangladesh Safety Accord
May 16, 2013

The National Retail Federation on Wednesday criticized a fire-and-building safety agreement for Bangladesh, led by labor groups such as Europe's IndustriALL. "While the proposal put forth by the labor unions addresses a number of shared concerns, the accord veers away from commonsense solutions and seeks to advance a narrow agenda driven by special interests," NRF CEO Matthew Shay said in a statement. Wednesday was the deadline for retailers to decide whether to sign the agreement, which is designed to prevent a repeat of another disaster in Bangladesh's garment industry.


Judge OKs $40M Class-Action Settlement Over Skechers Shoes; Ads Claimed They Aided Weight Loss
May 14, 2013

A federal judge approved a $40 million class-action settlement Monday between Skechers USA Inc. and consumers who bought toning shoes after ads made unfounded claims that the footwear would help people lose weight and strengthen muscles. U.S. District Judge Thomas B. Russell in Louisville approved the deal, which covers more than 520,000 claims. About 1,000 people eligible for coverage by the settlement opted not to take part.

Wet Seal to Pay $7.5 Million in Discrimination Lawsuit
May 13, 2013

Wet Seal agreed to pay $7.5 million to settle a federal racial discrimination lawsuit that accused the retailer of firing black employees because they didn’t fit the retailer’s “brand image.” The NAACP Legal Defense and Education Fund represented the plaintiffs in the class-action effort. The lawsuit alleged that former top Wet Seal executives denied equal pay and promotion opportunities to black store managers or removed them outright, replacing them with white employees.

Catalogers Voice Their Opposition to Internet Sales Tax Law
May 9, 2013

At the American Catalog Mailers Association's (ACMA) National Catalog Forum yesterday, assorted catalog mailers and suppliers voiced their concerns regarding the Main Street Fairness Act (aka the internet tax law) and discussed their options to help see that the bill isn't passed. Having already been passed by the Senate this past Monday, the next hurdle to the bill becoming law is its passage in the House. The ACMA and its members are fighting to make sure that doesn't happen.

Internet Sales Tax Bill Has Tough Road
May 9, 2013

Traditional retailers and cash-strapped states face a tough sell in the House as they lobby Congress to limit tax-free shopping on the internet. The Senate voted 69 to 27 Monday to pass a bill that empowers states to collect sales taxes from internet

Internet Sales Tax Bill is a Lifeline for Retailers
May 8, 2013

Just when you thought showrooming was here to stay, the Senate throws brick-and-mortar retailers a lifeline. For many physical retailers, including Best Buy, a national internet sales tax may signal the early arrival of Christmas. The potential collapse of the pricing advantage for online-only retailers may help brick-and-mortar models avoid a Circuit City fate. It is also good news for consumers, from a competitive stand point, and for states who will now collect much-needed incremental sales tax.

Internet Sales Tax Passes Senate
May 7, 2013

The Senate passed a bill Monday night aimed at making it easier for states to collect sales taxes for online purchases, but its final prospects remain uncertain. The bill, which passed the Senate 69-27, now heads to the House, where it faces an uncertain future because some Republicans view it as a tax increase. President Obama has said he supports the bill. The act would overturn decades-long precedent and leave many small online sellers with the task of figuring out how to manage collecting and remitting sales tax to nearly every state.

Retail Group Attacks eBay Over Online Sales Tax Bill
May 6, 2013

An organization called The Alliance for Main Street Fairness (AMSF), which is lobbying in favor of federal legislation that would empower states in the online sales tax debate, dialed up the rhetoric late last week. The AMSF issued a press release calling out top eBay executives, including CEO John Donahoe (whose name they misspell), for what it calls hypocrisy regarding the Marketplace Fairness Act.

OfficeMax Investor Sues to Stop Merger With Office Depot
May 3, 2013

An OfficeMax shareholder sued the directors of the company last week, seeking to block its acquisition by Office Depot, Bloomberg reported. The investor called the proposed $1.2 billion all-stock deal "grossly inadequate."

Retailers Pressed to Compensate Bangladesh Victims
May 3, 2013

Global labor rights activists are calling on Western brands to provide fair compensation for hundreds of Bangladeshi garment factory workers killed or seriously injured in last week's building collapse. The official death toll from the collapse of the Rana Plaza, which housed five garment factories that produced millions of shirts, pants and leggings for big Western retailers, has now exceeded 430, with hundreds more suffering lost limbs, broken bones, internal damage and other serious injuries.