• Deanna Clark-Esposito

Rise in Apparel Related Penalties Suggests Increased Oversight by FTC


Substantial increases went into effect earlier this week on August 1, 2016 from what had formerly been the maximum penalty amounts issued by the U.S. Federal Trade Commission (FTC) on a variety of apparel related violations. Examples include an increase from $210 to $525 per day for a violation of failing to maintain the required records under the Wool Products Labeling Act to that of “misbranding,” which encompasses a broad range of labeling errors including that of incorrectly identified fiber disclosures or garment care instructions, which saw a whopping increase from $16,000 per violation to $40,000.


Clearly, the FTC is sending a signal that it is serious about its expectation that those selling fashion merchandise must exercise due diligence in their product compliance protocols, which is a newly expanded area of law that the Clark-Esposito Law Firm, P.C. is helping apparel sellers navigate. It should be remembered that as all imported goods must comply with US laws at the time of importation, anyone importing merchandise must have ensured their foreign manufacturers have correctly labeled all products and certified to such on their compliance certificates. A failure to do so could lead the importer itself to being subject to an allegation of an FTC violation with the accompanying threat of penalties.


For more info. send us a message using the Contact form above.


Tags:

apparel

laws

FTC

Federal Trade Commission

violations

penalties

compliance

increase

problems

errors

labels

wool

wool products labeling act

garments

care

fashion

legal

©2020 by the Clark-Esposito Law Firm.

Per the NY State Attorney Ethics Rules we are providing the following statement:  ATTORNEY ADVERTISING.

DISCLAIMER: The content of this website has been prepared by the Clark-Esposito Law Firm, P.C. for informational purposes only and should not be construed as legal advice. The material posted on this website is not intended to create, and receipt of it does not constitute, a lawyer-client relationship, and readers should not act upon it without seeking professional legal counsel. The Clark-Esposito Law Firm, P.C., did not produce and is not responsible for the content of off-site legal resources. The materials on this site may constitute advertising under various state ethics rules.