Clothing Company Agrees to Give Away $4 Million in Jeans as Part of California 'Made in USA' Class Action Settlement
Apparel maker AG Adriano Goldschmied agreed to give out $4 million worth of free jeans as part of an agreement to settle a class action lawsuit related to the company’s alleged violations of California “Made in the U.S.A.” labeling standards. As part of the proposed settlement, AGAG also agreed to alter its country of origin labels on its apparel products to comply with California law, claiming it already started doing so in November 2014. AGAG did not admit any wrongdoing under the settlement.
David Paz, a San Diego man who allegedly bought a pair of AGAG’s “The Protege" brand jeans at a California Nordstrom, filed the lawsuit in Southern California U.S. District Court. Paz claimed the jeans violated California labeling rules because they were labeled “Made in the U.S.A.” despite the inclusion of imported fabric, thread, buttons, and rivets and subcomponents of the zipper assembly. Though federal law allows U.S.-origin labeling even if some imported components are used, a judge ruled one year ago that AGAG’s jeans also must comply with California’s stricter “all or substantially all” standard (see 1411030049). Citizens of Humanity and Macy’s face a similar class action (see 1504100014).
Under the proposed settlement agreement, consumers who purchased AGAG Adriano jeans that bore “Made in U.S.A.” labels despite including some imported components may obtain either a $20 promotional code or a new pair of AGAG jeans for each pair of jeans they bought that allegedly violated California law. With AGAG agreeing to provide a total of 25,000 pairs, and each pair of AGAG jeans valued at a minimum of $160, that amounts to $4 million worth of jeans, according to the agreement. AGAG also agreed to revise its country of origin labels on its apparel products to comply with California law, “including adding qualifying language as appropriate on its labels.” If approved by the court, AGAG would also operate under an injunction against any Made in U.S.A. labeling that does not comply with California codes.
Though California recently loosened its labeling laws to allow for Made in U.S.A. labeling as long as the value of imported components stays below a certain threshold (see 1504100014), the proposed settlement would not be affected by the change, it said. The Senate Commerce committee recently approved a bill that would override any state Made in U.S.A. labeling laws if they conflict with federal statutes (see 1511230015).
(David Paz v. AG Adriano Goldschmied, et al., S.D. Cal. 3:14-01372, Judge Sabraw)
Email ITTNews@warren-news.com for a copy of the proposed settlement agreement.