The company has also been accused of referring to a black boy as a "monkey" and selling wrap-around dresses as "kimonos."
The show's winning designer won $250,000 and her collection is set to be released this month.
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This isn't the first time the Swedish clothing giant's decisions have come under question.
Short clothing lifetimes are associated with changes in fashion.
The dresses weren't cheap to begin with: Some went for over $500.