Judge Lets California “Made in USA” Suit Over Citizens of Humanity Jeans Move Forward

U.S. District Judge Janis Sammartino in San Diego on April 8, 2015, denied a motion by Citizens of Humanity and Macy’s to dismiss a lawsuit that challenged the denim company’s “Made in USA” labels under California law.

The claims

Plaintiff Louise Clark, a La Jolla schoolteacher, said she bought a pair of Citizens of Humanity jeans at a Macy’s store in San Diego. She alleged that the jeans carried an unqualified Made in USA label even though they were cut and sewn in California from imported fabric and components such as thread, buttons, rivets and zippers.

California law at the time barred an unqualified Made in USA label if any part of a product was made outside the USA. Federal rules allowed apparel cut and sewn in the USA from USA-made fabric to be labeled Made in USA without listing minor imported trims.

The ruling

The defendants argued that federal law preempted California’s stricter rule. Judge Sammartino disagreed. She found that companies could comply with both by using a qualified label, such as “Made in the USA of imported fabric and components,” or by using separate labels for products sold in California. She also rejected the argument that the California law violated the Dormant Commerce Clause.

It was the second such ruling in the Southern District of California. In October 2014, Judge Dana Sabraw had denied a motion to dismiss a similar suit against AG Adriano Goldschmied and Nordstrom over AG jeans.

Peter Ross, a lawyer for Citizens of Humanity and Macy’s, told California Apparel News, “We appreciate the judge’s carefully reasoned decision, but we think she reached the wrong conclusion.”

What came next

California later eased its Made in USA law (our coverage). The AG case reached a class settlement (our coverage), and the Citizens of Humanity case was dismissed in December 2016 (our coverage).