Ivanka Trumps clothing line has had excess stock taken and relabeled as Adrienne Vittadini Studio and sold off to discount chain, Stein Mart.
The company that owns the exclusive production rights for Ivanka Trump clothing, G-III, admitted it had sold the relabeled merchandise without telling the Trump brand themselves.
Although Ivanka Trump brand merchandise was dropped from several retailers earlier this year, G-III reported that net sales of Ivanka Trump merchandise increased by $17.9 million from 2015. Much of this increase is probably due to Trump’s popularity in China, where she is often referred to as a Goddess on social media, and her high-end goods fly off of the shelves faster than retailers can restock them.
Swapping labels on clothes before they go to a discount retailer is not unusual. In fact, it is standard practice for a brand that does not want to be associated with a discount store to rip out or swap labels before apparel is sold.
The exception to this is found in the discount outlet stores that major brands run for their own merchandise.
“US textile product labeling laws allow substitution of labels, so long as the entity making the substitution is identified on the new label and keeps records for three years,” explained Susan Scafidi, professor of fashion law at Fordham Law School “This is mostly for supply chain tracking reasons. All of the other required information on the label — fiber content, country of origin, etcetera — must be maintained.”
Scafidi went on to say:
“Of course, the fact that a clothing retailer can legally relabel with certain restrictions doesn’t mean that it should, especially if label-conscious consumers are likely to be outraged by the switch.”
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