Ivanka Trump’s Company Faces Unfair Competition Class Action Lawsuit

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A San Francisco clothing retailer is accusing Ivanka Trump Marks LLC of unfair competition.

Plaintiff Modern Appealing Clothing, or MAC, alleges that Ivanka Trump’s clothing and accessories business derives an unfair market advantage from her status as the president’s daughter and from the work that she and her husband Jared Kushner do for the president.

MAC is a California partnership that owns and operates two San Francisco businesses specializing in women’s clothing and accessories. It was founded in 1980 by family members Ben, Chris, and Jeri Ospital.

According to this unfair competition class action lawsuit, defendant Ivanka Trump Marks LLC began to enjoy an unfair advantage over MAC on the day after Donald Trump was elected president. Since that date, MAC claims, sales of Ivanka Trump Marks clothing and accessories have surged to many times what they were the previous year.

The company contends Ivanka Trump should have taken appropriate steps to avoid exploiting public office for private gain, but has failed to do so.

MAC specifically calls out President Trump and some of his staff for statements made in support of Ivanka Trump Marks’ business interests. The company cites President Trump’s condemnation of Nordstrom for ceasing to carry the defendant’s line of clothing and accessories.

The company also cites presidential adviser Kellyanne Conway’s endorsement of Ivanka Trump products during a Feb. 9 interview with Fox News. MAC points out Conway delivered that endorsement from the White House press briefing room with the White House emblem visible behind her.

Statements from White House Press Secretary Sean Spicer have also contributed to this unfair business advantage, MAC claims.

MAC argues these endorsements violate federal and California laws, not to mention constitutional restraints on the presidency.

According to the plaintiff, these endorsements originating from within the executive branch of the U.S. government “constitute false, unfair, fraudulent, and/or deceptive business practices” that violate provisions of the California Business and Professions Code. MAC’s unfair competition class action lawsuit also raises a second claim for conspiracy.

“As a result of their unlawful acts, defendants have reaped and continue to reap unfair benefits and illegal profits at the expense of plaintiff MAC and the Class it seeks to represent,” the plaintiff claims.

“Defendants should be enjoined from this illegal activity and made to disgorge these ill-gotten gains and pay restitution to plaintiff MAC and the members of the Class.”

MAC proposes to bring this unfair competition class action lawsuit on behalf of a plaintiff Class that consists of “[a]ll women’s clothing and accessories businesses in California at any time from November 9, 2016, through the date of the trial.”

The company seeks an injunction barring Ivanka Trump Marks from continuing to exploit the alleged unfair business advantage. They also seek an award of restitution, attorneys’ fees and costs of litigation, plus any other remedy the court deems appropriate.

MAC is represented by attorneys R. Michael Lieberman of the Law Offices of R. Michael Lieberman and Patricia E. Henle of the Law Offices of Patricia E. Henle.

The Ivanka Trump Unfair Competition Class Action Lawsuit is Modern Appealing Clothing v. Ivanka Trump Marks LLC, Case No. CGC-17-557575, in the Superior Court for San Francisco County, California.