Company vs Company

Model sues Rainbow Shops for using AI copies of her after her contract ended

Francheska Pujols says the budget retailer kept running ads with AI-made versions of her in sexualised poses she never shot. Rainbow says it used its images properly.

Front of a Rainbow clothing store with a red Rainbow sign and racks of clothes outside under a blue sky
A Rainbow clothing store in Wethersfield, Connecticut. The lawsuit concerns the chain’s advertising, not this store. Photo: Mike Mozart / Wikimedia Commons, CC BY 2.0

In brief

  • New York model Francheska Pujols says Rainbow Shops used AI to make new images of her after her contract expired on 15 March.
  • Her contract allowed cropping and stylistic edits of real shoot photos, but not new images, according to the complaint.
  • She filed on 22 May in New York State Supreme Court, withdrew on 29 May to try to settle, and refiled on 15 June.
  • Her claims include defamation, misappropriation, false endorsement and violation of New York’s right-of-privacy law.
  • Rainbow says it used its images properly and did not violate her rights.

A New York model has taken budget fashion chain Rainbow Shops to court, accusing it of using artificial intelligence to keep putting her face in its advertising after her contract ran out. Francheska Pujols, a 28-year-old model and actress born in the Dominican Republic, refiled her lawsuit in New York State Supreme Court on 15 June.

Pujols signed with Rainbow in September 2024. According to her complaint, the contract expired on 15 March and only allowed minor changes such as cropping and stylistic alterations to photos from her real shoots, not the creation of new images.

What she says Rainbow did

The complaint alleges that, after the contract ended, Rainbow ran AI-generated images of her likeness in new settings and sexualised poses across its website, digital ads and stores. Examples cited in reports include a version of her lounging on another woman’s lap with a cocktail. Pujols says she sent a cease-and-desist letter in March, but the ads continued.

She is claiming defamation, misappropriation, false endorsement and violation of New York’s right-of-privacy law, and has asked for a jury trial. No damages figure has been reported; the suit points to lost licensing fees and harm to her professional image.

A lawsuit that came back

Pujols first sued on 22 May, then withdrew the case a week later. Her lawyer, Richard Altman, said at the time that the parties were seeking to resolve the matter privately. No settlement followed, and she refiled in June.

Rainbow has denied wrongdoing. A spokeswoman said the company used its images properly and did not violate her rights.

The fight is less about one photo shoot than about who owns a model’s face once the contract ends.

Why it matters

The case arrived just as New York’s Fashion Workers Act took effect on 19 June. The law requires brands to get a model’s written consent before creating or using a digital replica of them, a rule that did not exist when Pujols signed her contract.

What to watch

  • Rainbow’s formal response to the refiled complaint.
  • Whether other models bring similar claims under the new Fashion Workers Act.

How we got here

  1. Sep 2024Pujols signs a modelling contract with Rainbow.
  2. 15 Mar 2026Contract expires; Pujols sends a cease-and-desist letter that month.
  3. 22 May 2026She sues in New York State Supreme Court.
  4. 29 May 2026She withdraws the suit to try to settle privately.
  5. 15 Jun 2026She refiles the case.
  6. 19 Jun 2026New York’s digital-replica consent rule for models takes effect.

Sources

TradeWar wrote this article from the public reporting and documents below. Figures and statements are attributed in the text.

  1. NYC model replaced by AI clone for outrageous raunchy ads by brazen clothing retailer, lawsuit claims Yahoo (New York Post), 30 May 2026
  2. AI Models in Fashion: What Every Contract Needs to Say in 2026 Sharma Law
  3. Model Sues Fashion Brand Over Unauthorized AI-Generated Images OECD.AI Incidents Monitor, 30 May 2026