The Federal Trade Commission (FTC) is continuing its Made in America enforcement offensive in full force in 2024, further cracking down on companies for falsely advertising that their products are “Made in the USA” when, in reality, such products do not meet the thresholds that must be satisfied in order to legally make such claims. Businesses are cautioned to be mindful of the Made in USA “all or virtually all” standard and to err on the side of transparency in their marketing efforts.

Kubota to Face Historically High Penalty

The largest civil penalty for violating the Made in USA Labeling Rule (MUSA) is part of a settlement reached by the US Department of Justice (DOJ) on behalf of the FTC with tractor maker Kubota North America Corporation. The $2 million civil penalty arose from an FTC complaint brought against Kubota, and which resulted in a Stipulated Order for Permanent Injunction, Civil Penalty Judgment and Other Relief for falsely labeling replacement tractor parts as “Made in America” in violation of Section 5(a) of the FTC Act.

Repeat Offender

This was not Kubota’s first foray with the FTC for MUSA compliance violations. In fact, Kubota’s run-ins with the FTC began in 1998 with the FTC alleging that Kubota falsely advertised lawn and garden tractors as Made in the USA, notwithstanding the inclusion of significant imported parts. Kubota settled those allegations with the FTC in 1999 pursuant to a consent order, in which Kubota agreed that lawn or garden tractors...

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