The ads, which feature a still of Allen dressed as a Hasidic Jew from his classic 1977 comedy 'Annie Hall', appeared on billboards and the internet in May last year, according to the lawsuit filed in the US District Court in Manhattan.
The lawsuit accuses of "blatant misappropriation and commercial use of Allen's image".
The complaint reads: "Allen was not contacted, nor did he in any way give his consent to the use of his image and likeness, and he was not in any way compensated for the same, either prior to the infringement or thereafter."
Allen, director of recent films including 'Scoop' and Match Point, featuring Scarlett Johansson, said he does not endorse commercial products in the US. Therefore, the billboards that appeared were "especially egregious and damaging" and falsely implied that he was backing American Apparel.
Recently fellow US clothing brand Abercrombie & Fitch also involved itself in a controversial marketing campaign after it became a corporate sponsor of Columbus Children's Hospital in Ohio. The hospital renamed its ER the Abercrombie & Fitch Emergency Department and Trauma Center.
For more on the Abercrombie & Fitch sponsorship read .
Picture: by Colin Swan
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