The Alexander Report

By Tiffany Plater

It was first reported back in May of 2006 that Payless bought a shoe and accessories brand named American Eagle. This acquisition aimed at targeting a younger crowd that Payless had not been able to reach. And it was then that the confusion began. On Friday American Eagle Outfitters filed a lawsuit against Payless for allegedly misleading consumers to believe that a partnership had developed between the two retailers. American Eagle Outfitters (AEO) is accusing Payless of using their brand image and likeness to advertise for a new line shoes from American Eagle, the shoe brand.

Unfortunately, this misunderstanding could really hurt AEO’s image. Payless isn’t exactly viewed as a high-end source for retail shoes. Yet on the other hand, AEO isn’t Saks either. The price points for both retailers are similar: nothing over $50. Therefore the association was believable. I will have to admit that I was not confused about the new line of shoes from Payless. In fact, I was completely sure that Payless was partnering with the infamous clothing retailer. The ads did bare a certain resemblance to the look and feel of American Eagle Outfitters, which is why I was certain of the new “partnership”.

It is difficult to determine if Payless is at fault. There are no true laws against creating ads that are similar to others. I often see commercials or ads and play a guessing game as to who the ad is for because everything looks alike. While we wait for the verdict, the bigger picture reveals that AEO will have some cleaning up to do and Payless may have some paying up to do.