The Federal Trade Commission (FTC) continues to evidence a strong commitment to bringing enforcement actions against false or deceptive US-origin marketing claims. In short, to avoid landing on the wrong side of such an enforcement action, “Made in USA” claims must comply with legal requirements for substantiating that phrase or its equivalent.
As detailed in our prior alerts, the FTC has previously taken action regarding Pyrex-brand glass measuring cups and DreamCloud mattresses.
On June 27, 2023, the FTC publicly announced its draft complaint and Agreement Containing Consent Order against clothing accessory companies based in Massachusetts and New Hampshire, as well as their owner Thomas Bates, for knowingly making false advertisements and promotions, either expressly or by implication, that their products are all or virtually all made in the United States. The respondents have agreed to the terms of the FTC order, resulting in settlement of the FTC’s claims. Among other requirements of the order, the respondents will not be able to make unqualified US-origin claims unless they can meet the legal standard for doing so, and qualified claims must include clear and conspicuous disclosures about the foreign parts, ingredients, or components, or processing. Additionally, claims regarding assembly in the United States must comply with requirements related to substantial transformation.
The FTC order, which will be in place for 20 years,...
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