Two California shoppers filed a proposed class action on Dec. 18, 2015, accusing Joe’s Jeans Inc. and Nordstrom Inc. of selling jeans labeled “Made in USA” that were mostly made in Mexico or Asia since 2013. The suit came less than three weeks after another denim maker and Nordstrom asked a court to approve a $4 million settlement over similar labels.
The Joe’s Jeans complaint
The plaintiffs, from Encino and Sacramento, filed in Los Angeles Superior Court under California’s Civil Code and Business and Professions Code. One said she paid $70 for a pair at a Nordstrom Rack in Woodland Hills; the other said she paid about $160 for two pairs at a Nordstrom Rack in Roseville.
- The complaint said Nordstrom “failed to investigate or actively concealed from consumers” where the jeans were made.
- It said shoppers will pay more for jeans they believe are made domestically and cannot check the origin themselves.
- “Had plaintiffs known the truth about the country of origin claims… they would not have bought the jeans or would have paid much less for them,” the suit said.
Joe’s Jeans and Nordstrom could not be reached for comment, Westside Today reported.
The AG Jeans settlement
On Nov. 30, 2015, AG Adriano Goldschmied Inc. and Nordstrom asked the U.S. District Court for the Southern District of California to approve a settlement of more than $4 million in Paz v. AG Adriano Goldschmied, No. 3:14-cv-01372. That suit said AG jeans sold as made in the USA used foreign fabric, thread, buttons, rivets and zipper parts. According to the National Law Review, the deal would stop AG from using the Made in USA label on the products at issue and give class members a $20 voucher or a free pair of pants. The defendants continued to deny the claims.
California’s rule was changing
Both cases arose under California’s strict Made in USA statute. A revised law taking effect Jan. 1, 2016, lets products carry the label if foreign parts are no more than 5% of final wholesale value, or no more than 10% when the parts cannot be obtained in the USA.
Source & credit
Sources: Westside Today (City News Service): “Joe’s Jeans, Nordstrom Sued Over False ‘Made In USA’ Label”, Dec. 19, 2015; Arent Fox: “Nordstrom and Jeans Company Pay $4M to Settle ‘Made in USA’ Claim”, Dec. 2015; The National Law Review: “Settlement Looms for ‘Made in USA’ Jeans Suit”.