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142 3036

UNITED STATES OF AMERICA

BEFORE THE FEDERAL TRADE COMMISSION

COMMISSIONERS: Edith Ramirez, Chairwoman

Julie Brill

Maureen K. Ohlhausen

Joshua D. Wright

Terrell McSweeny

__________________________________________

)

In the Matter of ) DOCKET NO. C-4459

)

American Apparel, Inc., ) DECISION AND ORDER

a corporation. )

)

)

_________________________________________ ) 

The Federal Trade Commission (“Commission” or “FTC”), having initiated an 

investigation of certain acts and practices of the respondent named in the caption hereof, and the 

respondent having been furnished thereafter with a copy of a draft complaint that the Bureau of 

Consumer Protection proposed to present to the Commission for its consideration and which, if 

issued by the Commission, would charge respondent with violations of the Federal Trade 

Commission Act (“FTC Act”), 15 U.S.C. § 45 et seq.;

The respondent, its attorney, and counsel for the Commission having thereafter executed 

an Agreement Containing Consent Order (“Consent Agreement”), which includes: a statement 

by respondent that it neither admits nor denies any of the allegations in the draft complaint, 

except as specifically stated in the Consent Agreement, and, only for purposes of this action, 

admits the facts necessary to establish jurisdiction; and waivers and other provisions as required 

by the Commission’s Rules; and

The Commission having thereafter considered the matter and having determined that it 

had reason to believe that the respondent violated the FTC Act, and that a complaint should issue 

stating its charges in that respect, and having thereupon accepted the executed Consent 

Agreement and placed such agreement on the public record for a period of thirty (30) days for 

the receipt and consideration of public comments, now in further conformity with the procedure 

prescribed by Commission Rule 2.34, the Commission hereby issues its complaint, makes the 

following jurisdictional findings, and enters the following Order:
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1. Respondent American Apparel, Inc. is a Delaware corporation with its principal office or 

place of business at 747 Warehouse Street, Los Angeles, CA 90021.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding 

and of the respondent, and the proceeding is in the public interest.

ORDER

DEFINITIONS

For purposes of this Order, the following definitions shall apply:

1. Unless otherwise specified, “respondent” shall mean American Apparel, Inc. and its 

successors and assigns.

2. “Commerce” shall mean as defined in Section 4 of the Federal Trade Commission Act, 

15 U.S.C. § 44.

I.

IT IS ORDERED that respondent and its officers, agents, representatives, and

employees, whether acting directly or indirectly, in connection with the advertising, marketing, 

promotion, offering for sale, or sale of any product or service, in or affecting commerce, shall not 

misrepresent in any manner, expressly or by implication, the extent to which respondent is a 

member of, adheres to, complies with, is certified by, is endorsed by, or otherwise participates in 

any privacy or security program sponsored by the government or any other self-regulatory or 

standard-setting organization, including, but not limited to, the U.S.-EU Safe Harbor Framework

and the U.S.-Swiss Safe Harbor Framework.

II.

IT IS FURTHER ORDERED that respondent shall maintain and upon request make 

available to the Federal Trade Commission for inspection and copying, a print or electronic copy 

of, for a period of five (5) years from the date of preparation or dissemination, whichever is later, 

all documents relating to compliance with this order, including but not limited to:

A. all advertisements, promotional materials, and any other statements containing 

any representations covered by this order, with all materials relied upon in 

disseminating the representation; and 

B. any documents, whether prepared by or on behalf of respondent, that call into 

question respondent’s compliance with this order.
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III.

IT IS FURTHER ORDERED that respondent shall deliver a copy of this order to all 

current and future principals, officers, directors, and managers, and to all current and future 

employees, agents, and representatives having responsibilities relating to the subject matter of 

this order. Respondent shall deliver this order to such current personnel within thirty (30) days 

after service of this order, and to such future personnel within thirty (30) days after the person 

assumes such position or responsibilities. For any business entity resulting from any change in 

structure set forth in Part IV, delivery shall be at least ten (10) days prior to the change in 

structure. Respondent must secure a signed and dated statement acknowledging receipt of this 

order, within thirty (30) days of delivery, from all persons receiving a copy of the order pursuant 

to this section.

IV.

IT IS FURTHER ORDERED that respondent shall notify the Commission at least 

thirty (30) days prior to any change in the corporation(s) that may affect compliance obligations 

arising under this order, including, but not limited to: a dissolution, assignment, sale, merger, or 

other action that would result in the emergence of a successor corporation; the creation or 

dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this 

order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. 

Provided, however, that, with respect to any proposed change in the corporation(s) about which 

respondent learns fewer than thirty (30) days prior to the date such action is to take place, 

respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. 

Unless otherwise directed by a representative of the Commission in writing, all notices required 

by this Part shall be emailed to Debrief@ftc.gov or sent by overnight courier (not the U.S. Postal 

Service) to: Associate Director of Enforcement, Bureau of Consumer Protection, Federal Trade 

Commission, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The subject line must 

begin: In re American Apparel, Inc., FTC File No. 1423036. 

V.

IT IS FURTHER ORDERED that respondent, and its successors and assigns, within 

sixty (60) days after the date of service of this order, shall file with the Commission a true and 

accurate report, in writing, setting forth in detail the manner and form of its compliance with this

order. Within ten (10) days of receipt of written notice from a representative of the Commission, 

it shall submit an additional true and accurate written report. 

VI.

This order will terminate on June 16, 2034, or twenty (20) years from the most recent 

date that the United States or the Commission files a complaint (with or without an 

accompanying consent decree) in federal court alleging any violation of the order, whichever 

comes later; provided, however, that the filing of such a complaint will not affect the duration of:
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A. any Part in this order that terminates in fewer than twenty (20) years;

B. this order’s application to any respondent that is not named as a defendant in such 

complaint; and

C. this order if such complaint is filed after the order has terminated pursuant to this 

Part.

Provided, further, that if such complaint is dismissed or a federal court rules that respondent did 

not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld 

on appeal, then the order as to such respondent will terminate according to this Part as though the 

complaint had never been filed, except that the order will not terminate between the date such 

complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date 

such dismissal or ruling is upheld on appeal.

By the Commission, Commissioner McSweeny not participating.

Donald S. Clark

Secretary

SEAL:

ISSUED: June 16, 2014