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{{ 'now' | timezone: 'America/New_York' | date: '%b %d, %Y' }}

Line Sheet
cinq à sept
Lauren Sherman Lauren Sherman

Hi, and welcome back to Line Sheet. I’m in the air today and handing this issue over to Sarah Shapiro, who’s got the real story behind the news that Canadian fast-ish fashion giant Aritzia acquired West Hollywood retail legend Fred Segal’s intellectual property. For the uninitiated: Fred Segal was a micro-shopping center on Melrose that housed Ron Herman, run by Segal’s nephew. Ron Herman was where everyone got their J Brand jeans in the mid-aughts, and for decades was simply the center of cool in Los Angeles. Now, Brian Hill and the Aritzia gang want to bring back the magic.

Sarah’s also looking into some new practices put into place by Instagram that are making influencers super mad. (The affiliate wars are real!) I’ll be back on Monday, reporting from London. See you on the other side.

Also mentioned in this issue: Adam Mosseri, Lyndon and Jamie Cormack, Barneys, Alexandra Jane Roberts, Donald Trump, Herschel Supply, Tiffany Lopinsky, Julia Berolzheimer, LTK, CormackHill, Juan Pellerano-Rendón, 8100 Melrose Avenue, Meta, and more…

A MESSAGE FROM OUR SPONSOR

cinq à sept
cinq à sept

Sharing its name with the French term for the liminal moment linking late afternoon and early evening, Cinq à Sept brings the intriguing tension between day and night to an advanced contemporary collection.

 

Inspired by the hours between 5 and 7 p.m., when city streets are awash in the warm glow of the vanishing sun and office desks are abandoned for cocktails and as-yet unknown possibilities, Cinq à Sept embodies a deliberate balance between sophistication and ease, youthful daring, and confident allure.

Sarah Shapiro Sarah Shapiro
 

Two Things You Should Know…

  • The Supremes squash tariffs: In a 6–3 decision, the Supreme Court ruled today that President Trump could not invoke the International Emergency Economic Powers Act of 1977 to impose tariffs on imports. In an afternoon response, Trump called the justices who voted with the majority “fools and lapdogs” and said he’ll use other means to tax imports. But the landmark decision, which affirmed that tariffs are the prerogative of Congress, has immediate implications for retail.

    David French, executive vice president of government relations at the National Retail Federation, called the ruling a moment of clarity. “Clear and consistent trade policy is essential for economic growth, creating jobs and opportunities for American families,” he said. “We urge the lower court to ensure a seamless process to refund the tariffs to U.S. importers. The refunds will serve as an economic boost and allow companies to reinvest in their operations, their employees and their customers.”

    Still, retailers shouldn’t expect a windfall. Juan Pellerano-Rendón, chief marketing officer of Swap Commerce, told me that any refunds—if they materialize at all—are likely to be mired in bureaucracy. In any case, most brands have already restructured their operations around the tariff reality. The larger issue, he argued, was the closing of the de minimis loophole, which had previously allowed shipments valued less than $800 to enter the country duty-free. “That has shifted, and that’s not coming back,” he said, referring to elevated logistics and customs costs that are now effectively baked into the system. But for brands and executives who have spent the past year building contingency plans around tariff exposure and recalibrating supply chains and shipments, the ruling once again reframes the conversation.
  • Once upon a time in West Hollywood: This week’s news that Canadian fast-fashion heat seeker Aritzia had acquired the intellectual property of beloved L.A.-based retailer Fred Segal triggered a wave of nostalgia among the fashion press. The store was a must-visit destination in West Hollywood in the late ’90s—a retail institution known for discovering emerging brands and constantly reinventing itself, a sort of West Coast rhyming partner of (the also dearly departed) Barneys.

    The fact that this was in part driven by a decade-long real estate play went somewhat underreported. In 2016, Aritzia founder and former C.E.O. Brian Hill purchased the 8100 Melrose Avenue building that housed Fred Segal for $43 million through CormackHill, the real estate firm he owns with Herschel Supply co-founders Lyndon and Jamie Cormack. A four-year legal battle followed, culminating in a 2020 court order demanding the group remove the building’s large and actually iconic Fred Segal sign—because while they owned the building, they didn’t own the name. Acquiring the I.P. closes that loop. Hill is effectively leasing the building to himself, and now finally owns the Fred Segal name to match it. (CormackHill did not respond to a request for comment.)

    Anyway, now that the memories have been aired and the Clueless references have been made, there are still kinks to be worked out here. It’s not clear that a company like Aritzia—which is built largely on proprietary brands (Babaton, Wilfred, TNA, etcetera) with minimal third-party exposure—can operate a multibrand retailer. Of course, with $620 million in revenue in its most recent quarter, it has some room to experiment.

And now, the main event…

The Week in Shopping: Instagram’s “Shop the Look” Wars

The Week in Shopping: Instagram’s “Shop the Look” Wars

Influencers are outraged that Instagram is adding shoppable links to their posts without their involvement or consent, while other users may want to ask why Meta is quietly stress-testing the limits of the platform’s terms of service.

Sarah Shapiro Sarah Shapiro

On a recent Sunday evening, Julia Berolzheimer, a Charleston-based fashion and lifestyle influencer with more than a million followers on Instagram, called out the platform for behavior she called, using the poster vernacular, “shady AF.” Berolzheimer said she’d discovered that Instagram was slapping “Shop the Look” links on her content without her knowledge—and that those links led her followers to products she hadn’t selected or vetted. The post prompted other creators, as well as industry figures like ShopMy president and co-founder Tiffany Lopinsky, to voice their discontent. “The growth of shopping features across platforms reflects something we’ve believed for over a decade—consumers want to shop through creators they trust,” LTK founder Amber Venz Box told me. “But trust only works when recommendations are real.”

A MESSAGE FROM OUR SPONSOR

cinq à sept
cinq à sept

Sharing its name with the French term for the liminal moment linking late afternoon and early evening, Cinq à Sept brings the intriguing tension between day and night to an advanced contemporary collection.

 

Inspired by the hours between 5 and 7 p.m., when city streets are awash in the warm glow of the vanishing sun and office desks are abandoned for cocktails and as-yet unknown possibilities, Cinq à Sept embodies a deliberate balance between sophistication and ease, youthful daring, and confident allure.

Over the next several days, more creators piled on, often tagging Adam Mosseri, the head of Instagram. A Meta spokesperson told me that the company is running a limited test to collect feedback and explore improving the Instagram experience. The “Shop the Look” feature pulls products from “business catalogues,” and uses advanced A.I. visual recognition to identify products similar to those the creators are posting. Meta does not make any commissions on the test products.

The language itself, “Shop the Look,” is borrowed from influencer culture—perhaps leading followers to assume the links take them to items the creator personally recommends. And Instagram is not alone in deploying this tactic. Pinterest has a similar feature that overlays shoppable product links on creators’ images. “Creators tried to stop it,” one influencer told me, “but they eventually acquiesced because Pinterest started allowing us to use our own affiliate links in posts, which hadn’t been previously allowed.”

Berolzheimer told me she was never notified that her content was being repurposed: The “Shop the Look” link didn’t show up in the backend data she tracks to run her business, and she learned about the change only when another influencer asked how she’d managed to do it—a workaround that typically requires a third-party service like ManyChat. “The shocking part is that it isn’t visible to the person whose content it’s on,” said Berolzheimer. “Followers all thought that was what the influencer was sharing—that it was me. That was the upsetting part.” Lopinsky concurred: “It reduces what people share on Instagram to only what something looks like,” she said. “And it’s about so much more than that.”

The frustration extends beyond creators. After Berolzheimer wrote about the issue on Substack, some brands forwarded her article to their Meta ad sales reps. Another influencer, who also has her own brand, said that at a meeting at Meta’s headquarters last month, the team had mentioned they were beta testing a feature like this. (Allowing for the possibility that there might be a post-beta future in which Meta grants brands and influencers access to these kinds of tools, in the moment this was—at the very least—an annoying development.)

“Their last affiliate attempt was a pretty big miss,” this influencer said, expressing surprise that the company had already launched another iteration without broader creator testing. Meta’s response was succinct: “This is a limited test intended to help shoppers browse products that match their interests when they’re viewing posts or reels,” the company emailed. “We are constantly taking in feedback from creators and will continue to do so before rolling this out more broadly.”

This raises some questions: Did creators unknowingly agree to this? Does it even matter? And could we be witnessing a transitory moment—one in which it’s becoming clear that bored housewives in Utah were proofs of concept for Meta to build out a larger business, much like how the company leveraged media companies to grow the News Feed before changing its algorithm and abandoning them?

cinq à sept
cinq à sept

Anyway, all the leverage is in Meta’s court. When users sign up for Instagram, they grant the platform a broad, royalty-free, worldwide license to the content they post. The terms explicitly allow Instagram to place advertising and promotions “on, about, or in connection with” user content. As one brand representative put it, “The terms and conditions are already signed away. There’s no recourse.” She warned that the feature’s potential reach could “blow up the entire ecosystem”—not just for influencers, but for photographers and others whose creative work flows through the same pipeline.

Meta Questions

While Meta’s terms of service cover certain uses of images and comments, they do not necessarily shield the company from all forms of liability. Alexandra Jane Roberts, a law professor at Northeastern University who specializes in I.P. and advertising law, identified some legal frameworks worth examining, such as the right of publicity—a state-law doctrine recognized in most U.S. jurisdictions—that prohibits the commercial use of someone’s name, image, or likeness without their consent. She pointed out that influencer marketing already meets the legal criteria for commercial use: Influencers get paid and receive affiliate commissions, and any representations they make are considered advertising claims.

Another issue could be false endorsement, a federal ruling that prohibits creating the false impression that a celebrity or public figure—in this case, the influencer—endorses a product. And there are rulings from the Federal Trade Commission specifying that endorsers of a product must have actually used the product; linking products that a creator has never worn or recommended under the creator’s name could draw F.T.C. scrutiny.


As for Instagram’s characterization of the feature as a “limited test,” Roberts was skeptical that it would provide legal protection. But do any of these influencers really want to take on a $1.7 trillion company? Will they even leave the platform over this? Probably not. Affiliate commissions and instant access to a built-in audience function as golden handcuffs. Some, including Berolzheimer, have diversified—maintaining independent websites, building Substack audiences, and cultivating direct relationships with followers. That ownership matters precisely because it cannot be repurposed by a platform. More likely, Meta will refine the beta in response to the backlash, or quietly pivot to another experiment.

 

Until Monday,
Lauren

P.S.: We use affiliate links because we are a business. We may make a couple bucks off them.

Fashion People

Puck fashion correspondent Lauren Sherman and a rotating cast of industry insiders take you deep behind the scenes of this multitrillion-dollar biz, from creative director switcheroos to M&A drama, D.T.C. downfalls, and magazine mishaps. Fashion People is an extension of Line Sheet, Lauren’s private email for Puck, where she tracks what’s happening beyond the press releases in fashion, beauty, and media. New episodes publish every Tuesday and Friday.

Wall Power

Puck’s daily art market email, anchored by industry expert Marion Maneker, offers unparalleled access to the mega-auctions and galleries, elite buyers and sellers, and the power players who run this opaque world.

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