advertisement
advertisement

NeimanMarcus.com’s Fake Faux-Fur Fiasco Draws A Real 20-Year Consent Agreement

Written by Frank Hayes
March 20th, 2013

In what is probably a sign of the real-vs.-fake end times, Neiman Marcus agreed on Tuesday (March 19) to stop labeling real fur as “faux fur.” According to a very real FTC complaint, between October 2009 and November 2012, the luxury chain’s NeimanMarcus.com and BergdorfGoodman.com websites sold a Burberry jacket, a Stuart Weitzman shoe and an Alice + Olivia Kyah coat described on the sites as trimmed with faux fur, when actually the trimming was real fur.

(In fairness to the retailer, it was also selling the shoes in its catalog and saying they were trimmed with “dyed mink.” Wrong both times—it was rabbit fur.)

Neiman signed a consent agreement not to describe anything as faux fur unless it really is fake and to do so for the next 20 years. Two unrelated pure-play E-tailers—DrJays.com and RevolveClothing.com—agreed to the same terms for their own fake fur failures.

Part of the reason Neiman Marcus got into trouble here is that it started selling the fake faux fur products less than six months after settling a previous FTC fake faux fur investigation. Another difficulty is that the (very real) Fur Products Labeling Act dates from 1951, when real fur that came from animals was almost always more expensive than polyester fake fur that came from oil.

But the bigger problem may be the fact that physical stores have human beings who can catch some of these labeling problems before they become a federal case. Online stores don’t.

According to the FTC’s complaint, both the jacket and coat had labels indicating they contained real fur. If an in-store customer had an allergy or other objection to fur, she would likely check the label, then complain to an associate if the fur’s reality status didn’t match up with the store’s signage.

But online, the customer never sees a label before the item arrives. Neither, most likely, does anyone associated with the E-Commerce operation except workers who are fulfilling orders in the distribution center. Even if vendors are correct in the descriptions they give to retailers, those descriptions pass through so many hands on the way to the website that errors will slip through—and depending on the type of error, that can have real penalties.

This all leads to a serious question: Is it time for chains to start adding a photo of a label to the product images with each item on a website? That’s more effort, but it would avoid a whole range of problems based on customer preferences, allergies and legal requirements. It would also provide potential legal cover for chains if the product was mislabeled by the vendor.

Mostly, though, it would take away one more excuse from a customer for delaying a purchase. If she just wants to see the label before buying, it can be right there. Sure, chains want to see customers walking in the door (especially their best customers, in Neiman Marcus’s case). But omnichannel is about getting customers to shop using whatever channel they like—and to buy as soon as they’re ready.

Without an online label, a customer may never get around to finding the same chain’s store and checking the product. That’s faux omnichannel—and for the chain, a sale that really is lost.


advertisement

Comments are closed.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.