Nordstrom, AG Jeans ‘Made in USA’ Class Action Will Continue

A California federal judge says that a class action lawsuit against Nordstrom, Inc. and the jeans company AG Adriano Goldschmeid, Inc. will continue, alleging that the AG jeans sold in Nordstrom stores are incorrectly marked “Made in the U.S.A.” because they contain components from outside the country.

U.S. District Judge Dana M. Sabraw denied AG and Nordstrom’s motion to have the deceptive marketing lawsuit dismissed, saying that the class action lawsuit is not preempted by the Federal Trade Commission Act (FTCA) or the Textile Fiber Products Identification Act (TFPIA).

The Nordstrom class action lawsuit was filed by California resident David Paz, who claims he purchased a pair of “The Protege” brand jeans, made by AG, from a Nordstrom store in San Diego on May 16.

Paz claims that “The Protege” jeans he purchased were “marked with a ‘Made in the USA’ label.”

“Plaintiff alleges he relied on this representation when purchasing the jeans, and ‘he believed at the time he purchased The Protege that he was supporting U.S. jobs and the U.S. economy,” Judge Sabraw explains.

However, Paz claims that The Protege “‘actually contains component parts made outside the United States.” This includes “the fabric, thread, buttons, rivets, and/or certain subcomponents of the zipper assembly of the jeans.'”

This deceptive marketing class action lawsuit was filed for anyone who purchased a pair of AG jeans from the clothing company directly or Nordstrom. Paz also proposed a class of AG customers who purchased their jeans in California.

Paz charged Nordstrom and AG with violating California’s Consumer Legal Remedies Act, violating California’s Unfair Business Practices Act, and violating two California Business and Professions Code.

Nordstrom and AG argued that according to the Federal Trade Commission that products that have the “Made in U.S.A.” or “Made in America” label may contain a “negligible, amount of foreign account.”

Judge Sabraw says that both parties agree that that the federal statute does allow for its “Made in U.S.A.” labeled products to contain “material from a foreign country” and they agree that California does not allow for such labeling “unless the product of all articles, units and parts thereof were ‘entirely or substantially made, manufactured, or produced’ in the United States.”

Nordstrom and AG said that the federal regulation should preempt the law in the Golden State, but Judge Sabraw explains that a “conflict of preemption exists ‘where it is impossible for a private party to comply with both state and federal law,'” which the judge says is not the case.

“Outside California, Defendants could use the ‘Made in the U.S.A.’ labels, but inside California, they could not,” Judge Sabraw said. “This may be burdensome for defendants, but it is not impossible for them to do so.”

AG and Nordstrom also said that they are required by the federal Textiles and Fiber Products Identification Act to label the jeans as “Made in U.S.A.” “even if the garment includes foreign-made materials, whereas California law prohibits the use of the ‘Made in the U.S.A.'”

The federal judge said that she disagrees with the argument and says that “although the TFPIA requires that textile fiber products processed or manufactured in the United States be so identified, it does not require an unqualified ‘Made in U.S.A.” label if the product is made, either in whole or in part, or imported materials.”

She explains that the federal statute “requires that the label disclose those facts” and should say something like “‘Made in U.S.A. of imported fabric.'”

For these reasons, Judge Sabraw says that AG and Nordstrom’s labeling violations are not preempted by the federal statutes.

AG Adriano Goldschmied and Nordstrom are represented by Kalley R. Aman, Mark T. Cramer and Sarah A. Syed of Buchalter Nemer.

David Paz is represented by John H. Donboli and J.L. Sean Slattery of Del Mar Law Group LLP.

The Nordstrom Made in U.S.A. Class Action Lawsuit is Paz v. AG Adriano Goldschmied, Inc. et al, Case No. 3:14-cv-01372, in the U.S. District Court for the Southern District of California.

UPDATE: According to court documents filed on Nov. 30, 2015, Nordstrom and AG Adriano Goldschmied have agreed to pay more than $4 million to settle the Made in USA class action lawsuit.