Nordstrom 2015 Annual Report Download - page 10

RISKS DUE TO LEGAL AND REGULATORY FACTORS
We are subject to certain laws, litigation, regulatory matters and ethical standards, and our failure to comply with or adequately
address developments as they arise could adversely affect our reputation and operations.
Our policies, procedures and practices and the technology we implement are designed to comply with federal, state, local and foreign laws,
rules and regulations, including those imposed by the SEC and other regulatory agencies, the marketplace, the banking industry and foreign
countries, as well as responsible business, social and environmental practices, all of which may change from time to time. Significant
legislative changes, including those that relate to employment matters and health care reform, could impact our relationship with our
workforce, which could increase our expenses and adversely affect our operations. In addition, if we fail to comply with applicable laws and
regulations or implement responsible business, social, environmental and supply chain practices, we could be subject to damage to our
reputation, class action lawsuits, legal and settlement costs, civil and criminal liability, increased cost of regulatory compliance, restatements
of our financial statements, disruption of our business and loss of customers. Any required changes to our employment practices could result
in the loss of employees, reduced sales, increased employment costs, low employee morale and harm to our business and results of
operations. In addition, political and economic factors could lead to unfavorable changes in federal, state and foreign tax laws, which may
increase our tax liabilities. An increase in our tax liabilities could adversely affect our results of operations. We are also regularly involved in
various litigation matters that arise in the ordinary course of business. Litigation or regulatory developments could adversely affect our
business and financial condition.
We continue to face uncertainties due to financial services industry regulation and supervision that could have an adverse affect
on our operations.
Federal and state regulation and supervision of the financial industry has increased in recent years due to implementation of consumer
protection and financial reform legislation such as the Credit Card Accountability Responsibility and Disclosure Act of 2009 (‚CARD Actƒ) and
the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (‚Financial Reform Actƒ). The Financial Reform Act significantly
restructured regulatory oversight and other aspects of the financial industry, created the Consumer Financial Protection Bureau (‚CFPBƒ) to
supervise and enforce consumer lending laws and regulations, and expanded state authority over consumer lending. The CARD Act included
new and revised rules and restrictions on credit card pricing, finance charges and fees, customer billing practices and payment application.
We anticipate more regulation and interpretations of the new rules to continue, and we may be required to make changes, or TD may be
required to make changes in connection with the program agreement, to credit card practices and systems which could adversely impact the
revenues and profitability of our Credit segment. Compliance with applicable laws and regulations could limit or restrict the activities of our
business, whether conducted by us or TD, and any potential enforcement actions by those agencies for failure to comply could have an
adverse impact on us.
Item€1B. Unresolved Staff Comments.
None.
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