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UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION

__________________________________________

)

In the Matter of ) AGREEMENT CONTAINING

) CONSENT ORDER

American Apparel, Inc., )

a corporation. )

)

) FILE NO. 142 3036

_________________________________________ ) 

The Federal Trade Commission has conducted an investigation of certain acts and 

practices of American Apparel, Inc. (“proposed respondent”). Proposed respondent, having been 

represented by counsel, is willing to enter into an agreement containing a consent order resolving 

the allegations contained in the attached draft complaint. Therefore,

IT IS HEREBY AGREED by and between American Apparel, Inc., by its duly 

authorized officers, and counsel for the Federal Trade Commission that:

1. Proposed 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. Proposed respondent neither admits nor denies any of the allegations in the draft 

complaint, except as specifically stated in this order. Only for purposes of this action, 

proposed respondent admits the facts necessary to establish jurisdiction.

3. Proposed respondent waives:

A. any further procedural steps;

B. the requirement that the Commission’s decision contain a statement of findings of 

fact and conclusions of law; and

C. all rights to seek judicial review or otherwise to challenge or contest the validity 

of the order entered pursuant to this agreement.

4. This agreement shall not become part of the public record of the proceeding unless and 

until it is accepted by the Commission. If this agreement is accepted by the Commission, 

it, together with the draft complaint, will be placed on the public record for a period of 

thirty (30) days and information about it publicly released. The Commission thereafter 

may either withdraw its acceptance of this agreement and so notify proposed respondent, 
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in which event it will take such action as it may consider appropriate, or issue and serve 

its complaint (in such form as the circumstances may require) and decision in disposition 

of the proceeding.

5. This agreement contemplates that, if it is accepted by the Commission, and if such 

acceptance is not subsequently withdrawn by the Commission pursuant to the provisions 

of Section 2.34 of the Commission’s Rules, the Commission may, without further notice 

to proposed respondent, (1) issue its complaint corresponding in form and substance with 

the attached draft complaint and its decision containing the following order in disposition 

of the proceeding, and (2) make information about it public. When so entered, the order 

shall have the same force and effect and may be altered, modified, or set aside in the 

same manner and within the same time provided by statute for other orders. The order 

shall become final upon service. Delivery of the complaint and the decision and order to 

proposed respondent’s address as stated in this agreement by any means specified in 

Section 4.4(a) of the Commission’s Rules shall constitute service. Proposed respondent 

waives any right it may have to any other manner of service. The complaint may be used 

in construing the terms of the order. No agreement, understanding, representation, or 

interpretation not contained in the order or the agreement may be used to vary or 

contradict the terms of the order.

6. Proposed respondent has read the draft complaint and consent order. Proposed 

respondent understands that it may be liable for civil penalties in the amount provided by 

law and other appropriate relief for each violation of the order after it becomes final. 

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 
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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.

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 
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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 twenty (20) years from the date of its issuance, 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:

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.
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Signed this ________ day of __________, 2014.

American Apparel, Inc.

Dated: _____ By: ____________________________________

GLENN WEINMAN

EVP, General Counsel, and Secretary

American Apparel, Inc.

Dated: _____ By:_____________________________________

KATHERINE WHITE

JESSICA LYON

KATHERINE RACE BRIN

Counsel for the Federal Trade Commission

APPROVED:

_________________________________

CHRISTOPHER N. OLSEN

Assistant Director

Division of Privacy and Identity Protection
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_________________________________

MANEESHA MITHAL

Associate Director 

Division of Privacy and Identity Protection 

_________________________________

JESSICA L. RICH

Director

Bureau of Consumer Protection