Thursday, August 31, 2017

Rubenstein v. The Gap, Inc.

A retailer does not violate the False Advertising Law by using its own brand name labels on clothing that it manufactures and sells at its factory stores, even if the quality of the merchandise is inferior and such merchandise was never sold at its regular stores. A retailer does not engage in a fraudulent business practice for purposes of the Unfair Competition Law by using its own brand names on factory store clothing labels or by failing to disclose that its factory store clothing was not previously for sale at traditional stores. A retailer's use of its own brand names to market less expensive clothing lines in factory stores is not a partial representation, even if the products are alleged to be inferior to other brand name products. A plaintiff cannot assert a viable Consumers Legal Remedies Act against a retailer who has who made no misrepresentations as to the characteristics or quality of its factory store merchandise, and who has not failed to disclose any facts that it was obligated to disclose.

Rubenstein v. The Gap, Inc. - filed Aug. 24, 2017, Second District, Div. One
Cite as 2017 S.O.S. 4294

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