Suits Home In On ‘USA’ Jeans

0
Suits Home In On ‘USA’ Jeans
Buttoned Up: Siwy Denim’s Alain Lafourcade at the company’s facility in L.A.

The labels inside the newest batch of jeans designed and manufactured by L.A.’s Siwy Denim Inc. now read “Made in the USA with imported components.”

Those last three words are a recent addition, made after three other local denim companies were sued over claims that, even though their jeans are sewn and assembled here, the use of foreign-made buttons, zippers and other components means their jeans aren’t truly made in America.

News of the lawsuits has been spreading through the apparel industry, the latest target of litigation challenging American-made claims that in the past have mostly involved manufacturers of other goods.

Local apparel makers have unsuccessfully tried to have the cases dismissed, arguing that a more lenient federal law governing what qualifies as domestically made trumps California’s stricter law. They say complying with both laws is impossible, but judges have disagreed. And as the cases have been filed as class actions, manufacturers are faced with either altering labels or paying out potentially hundreds of thousands of dollars in damages or settlements.

Siwy, which, like other firms, uses some foreign components in its jeans, saw the trend and made a decision a few months ago.

“We’re changing labels,” said Alain Lafourcade, Siwy’s chief operating officer. “We have to comply with what the law is.”

The lawsuits, all filed by a San Diego law firm on behalf of individual consumers, allege customers paid higher prices for jeans they believed were made in America, but that they were misled by false advertising. The suits argue manufacturers’ “Made in the USA” labels don’t follow California laws that mandate every part of all products sold in the state must be made in the United States if they are labeled or advertised as such.

That conflicts with a federal law that manufacturers have operated under for years, which allows minor parts to be made overseas.

American made?

Behind the suits against local firms is San Diego’s Del Mar Law Group. In June, it sued South Gate jeans maker AG Adriano Goldschmied Inc. and Nordstrom Inc. of Seattle, saying the two companies didn’t tell the whole truth to California consumers regarding the country of origin of AG Adriano’s products.

Buyers believe that products made domestically are better quality, the lawsuit says, and will pay more for them than for products made overseas. California laws are designed to protect consumers from such “false misrepresentation.”

“Most people care about truth in advertising and truth in labels,” said John Donboli, Del Mar partner.

He also represents plaintiffs who bought jeans made by Huntington Park’s Citizens of Humanity and sold by retailer Macy’s Inc. of New York. A third lawsuit filed by the firm targets Vernon manufacturer Dutch, which makes Joie brand jeans, and doesn’t name a retailer.

All three cases are filed in federal district court in San Diego. The Dutch case was also filed in San Diego Superior Court.

In all three cases, Donboli said plaintiffs have the same goal.

“The focus and emphasis of all three lawsuits is to change the label,” he said.

Of course, plaintiffs are also asking for attorney fees and other court expenses in the three federal cases. In the state case against Dutch, plaintiffs have asked to receive damages – though they don’t say how much – as well as attorney fees and restitution of what they paid for the items. They also want defendants to admit to breaking California’s American-made law.

A judge last month threw out requests by AG Adriano and Nordstrom to have their case dismissed. And last week, lawyers defending Citizens of Humanity and Macy’s withdrew a dismissal request.

Dutch’s attorneys filed an answer in superior court to the lawsuit, denying all complaints and claims of damages, but have not moved to have the case dismissed.

While these cases have not been decided, apparel makers are concerned. Other cases filed by Del Mar over the years, targeting manufacturers in other industries, have resulted in hefty payments to attorneys and plaintiffs. For instance, earlier this year, a Utah sporting goods manufacturer settled a Del Mar-filed case, agreeing to pay $485,000 to Del Mar, donate $325,000 to charity and offer discounts to customers. The company had sold basketball hoops in California that were labeled as American made, though the nets and some bolts were made in China.

Elise Shibles, a partner with Sandler Travis & Rosenberg in San Francisco, which is representing Dutch in its federal lawsuit, said a change in label wording is the most common outcome when courts rule against manufacturers. Manufacturers typically don’t see the suits as motivation to find American-made components.

“The types of products made in the U.S. are fairly limited,” she said. “If you think about it, this is about the metal button on your jeans.”

Siwy has not been served with any legal notices – yet. But Lafourcade said the cases brought against other local firms have made his company take notice.

Though other denim makers are fighting over the “Made in the USA” claims, Lafourcade said it was no big deal for Siwy to add “with imported components” to its old label.

The company employs about 60 workers at its manufacturing plant, where they cut, wash and finish jeans. The midsize company chooses to do that work in California to have more flexibility and better quality control, he said.

And while he believes Siwy’s old label helped the company’s jeans sell, he also said he doesn’t think the new label will hurt sales.

“People know we make it here,” he said. “We are giving birth to jeans here.”

No posts to display