March 30, 2010, 12:00 AM

An online retailer settles with American Apparel

Online retailer has reached a settlement with American Apparel Inc., which sued the e-retailer for allegedly violating the consumer brand manufacturer’s policy against selling unembellished American Apparel garments.

Online retailer has reached a settlement with American Apparel Inc. after the consumer brand manufacturer accused the company of selling unembellished American Apparel garments.

American Apparel, No. 236 in the Internet Retailer Top 500 Guide, only allows its wholesale customers to resell clothes after screen-printing or other alterations to the garments.

In a lawsuit filed in January in the United States District Court for the Central District of California, American Apparel accused of copyright infringement, trademark infringement, unfair competition and false advertising.

“NYCBlanks has agreed to forever cease and desist from selling AA products and using AA’s intellectual property,” says Joyce Crucillo, American Apparel’s chief litigation counsel. “NYCBlanks has also paid AA thousands of dollars to settle this lawsuit.” did not respond to a request for comment. The firm’s web site says it was no longer accepting orders for any products.

American Apparel will sue another retailer for similar conduct, Crucillo says. However, she declined to name the other retailer American Apparel intends to sue.

American Apparel sells its clothes online and through 280 retail stores in 20 countries.

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