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It's illegal for them to use the term, for several different reasons.
The Unheard Stories of the 'Urban Indian
Forever21 Has Its Very Own Pair of Navajo Panties - Racked
The Colonization of Native American Trademarks and Designs: the past, present, and (potentially decolonized) future – Center for Art Law
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Forever 21 Is in Trouble for Making 'Navajo' Panties, Too
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Use of NAVAJO – Is Urban Outfitters Infringing or Not?
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Business Ethics Case Analyses: Urban Outfitters- Racially Insensitive Towards Navajo Tribe