Victoria’s Secret Sued for $15M Over Misleading Customers

Hosiery company says the lingerie retailer changed products but not the packaging

   

Victoria’s Secret Sued for $15M Over Misleading Customers

Lingerie retailer Victoria’s Secret — the largest subsidiary of Limited Brands (NYSE:LTD) — has been sued for $15 million by a hosiery supplier for allegedly misleading customers.

In the lawsuit, Zephyrs — a company that once supplied hosiery to Victoria’s Secret — claims that the specialty chain breached a 2001 agreement and sold  “knockoffs” of several lines of pantyhose to customers. The suit states that the deception stems from Victoria’s Secret’s decision to not change the images on its packaging after it changed the product.

“Victoria’s Secret changed the product in the packaging but didn’t change anything else except ‘Made in Canada’ on the back of the package. It used to say ‘Made in Italy’,” Joseph Gioconda, an attorney representing Zephyrs, told Women’s Wear Daily.

The following products are at the center of the lawsuit:

  • Lace Top Fish Net Stockings
  • Fish Net Thigh-Highs With Backseam
  • Signature Stripe Thigh-High With Bows

“(Victoria’s Secret) has sold at least $120 million worth of Zephyrs-designed product throughout all 50 states, through the Victoria’s Secret chain of retail stores, the Victoria’s Secret print catalog and the popular Victoria’s Secret Web site,” Gioconda said.

 


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/victorias-secret-sued-for-15m-over-misleading-customers/.

©2014 InvestorPlace Media, LLC

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