Legal

Dick Durbin (D-Ill.) is about to propose sweeping legislation that would impose a tax on all online purchases in a move aimed at closing states' budget shortfalls. Durbin's bill, dubbed the Main Street Fairness Act, intends to push online retailers to collect state sales tax on items purchased out of state. For more than a decade internet shoppers have enjoyed a sales tax holiday as a result of sales tax moratoriums established in 1998 to foster growth in the digital sales business. But with e-commerce businesses like Amazon.com no longer fledgling entities, and with states' budget deficits growing, imposing an e-commerce sales tax has become a hot-button issue.

Hawaii lawmakers are looking for creative ways to tax online shopping, either by requiring internet sellers to hand over customer information to the government or by enrolling in a multistate program in which websites voluntarily collect taxes.

American Apparel's latest financial savior isn’t worried about recent allegations that CEO Dov Charney sexually assaulted a group of his female employees. Michael Serruya, who last week managed to save American Apparel from defaulting on its debt covenants, said he thinks the sexual assault case against Charney is an attempt to take advantage of his bad image.

J.Crew was sued for naming its "Duquette leopard print sweater" after Tony Duquette, an interior designer known for his use of leopard print on wallpaper, fabric and furniture. Although Duquette died in 1999, his company continues to splash spots everywhere via his successor, Hutton Wilkinson, who has accused J.Crew of trademark infringement.

Overstock.com announced the search engine penalty enforced on it by Google in late February has been lifted. "We understand Google's position and we have made changes to remain clearly within their guidelines," said Overstock.com CEO Patrick Byrne.

Wegmans Food Markets has agreed to settle the trademark infringement lawsuit Walgreens filed against the supermarket chain over its use of a logo similar to the one used by the drug store company.

The verdict in the retrial over who owns the rights to the billion-dollar Bratz franchise means Mattel Inc. will owe MGA Entertainment Inc. millions of dollars. The outcome is a major turnabout from the 2008 trial, in which Mattel was awarded $100 million.

American Apparel, the Los Angeles clothier at risk of running out of money, has received board approval to raise at least $15 million from a group of private investors, said four people familiar with the process.

Clothing maker Jones Group is one of three potential buyers for upscale shoe and handbag maker Jimmy Choo. Jones Chief Executive Wesley Card told Reuters in February that his company was looking to buy brands that would help extend Jones' reach, particularly into overseas markets.

American Apparel is racing to secure $10 million in rescue financing to stave off bankruptcy. According to a report, the T-shirt retailer has held talks with an individual investor who's expressed interest in providing money in the form of equity. The company hopes to secure financing by this week.