The Federal Trade Commission recently closed three investigations into whether marketers made false claims about whether their products are made in the United States.
The FTC's Enforcement Policy Statement on U.S. Origin Claims says that a marketer should not make unqualified claims that its products are made in the United States, unless the marketer can substantiate that the products are "all or virtually all" made here. The FTC also recently promulgated a new Made in USA Labeling Rule, which codifies the standards set forth in the enforcement policy statement.
The FTC looked into whether marketing materials from KLOS Guitars may have overstated the extent to which certain of its guitars are made in the United States. The FTC said that while the company designs and assembles guitars in Utah, the company's guitars incorporate significant important parts. In a December 15th closing letter, the FTC said that while it is appropriate for KLOS to promote the fact that it employs workers, including skilled luthiers, to design and assemble guitars in the United States, the company's marketing materials should not convey that the products are made here, unless the company can substantiate that claim. (FWIW, luthiers are people who make string instruments.)
The FTC also looked into whether marketing for Neaties hangers overstated the extent to which they made in the United States. According to the FTC, although most Neaties plastic hangers are made here, Neaties also offers several...
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