If you bought a product and were influenced to make the purchase
because you thought it was made in the USA but it was not, you may
have a legal claim.
Products labeled “Made in the USA” enjoy a heightened
demand among a large segment of the consuming public, often driving
purchase decisions. Whether it’s for reasons of patriotism or
a perception of quality, the “Made in the USA” label
can command premium prices. However, there are very strict
standards to be satisfied before a product legally may be labeled
“Made in the USA.” The use of “Made in the
USA” or “Made In America” claim may only appear
on a label if the product is:
- “All or virtually all” made in the United States; and
- Made using American-made components and ingredients.
This standard goes beyond final assembly. The Federal Trade
Commission, which is the primary enforcer of “Made In
USA” labeling requirements, examines the entire supply chain,
including raw materials sourcing, components of manufacturing, and
assembly processes. Companies cannot simply import foreign-made
components, assemble them domestically and then claim the
“Made in the USA” designation. The FTC evaluates
several factors when determining whether a product meets the
“all or virtually all” standard, such as the proportion
of the products total manufacturing costs attributable to U.S.
parts and processing, how far removed any foreign content is from
the finished product, and the importance of the foreign content or
processing to the overall function of the product. Also, depending
on the context and overall impression conveyed to consumers, U.S.
symbols or geographic references (for example, U.S. flags or
outlines of a map of the USA) may convey a Made In the USA claim
even if there is no explicit representation that the produce is
made in the USA.
The FTC is not the only enforcer of the Made in the USA labeling
rule. Private litigants may rely on their states consumer
protection laws to challenge false Made In USA labeling, and
California has its own stricter statute.
The recent case against R.C. Bigelow, Inc. tea company is a good
example of these types of claims. Bigelow labeled its packages of
tea as “Manufactured in the USA 100% American Family
Owned” and “American Classic.” The truth,
however, was that none of the tea sold in those packages was grown
or processed in the United States, nor were the bags and strings
manufactured in the USA. In electing to use the Made In USA
labeling, Bigelow relied on the fact that the products were
assembled in the company’s American plants. This case was
litigated as a class action under California law; and a jury
awarded the class $2,360,000 in compensatory damages.
Another example is a class action case presently pending in the
federal district court in New York State. Reynolds Consumer
Products LLC was sued in a class action for falsely labeling
Reynolds Wrap aluminum foil as “Made In USA” when a
vital component is sourced from outside the United States.
Specifically, the lawsuit alleges that aluminum foil is made from
bauxite, and bauxite hasn’t been mined commercially in the
U.S. since 1981. According to the complaint, “without bauxite
sourced from outside the United States, it would be impossible to
produce the foil product.” Reynolds was sued alleging
violations on New York’s consumer fraud law. This case
recently was filed and is still pending.
Consumers who care if the products they purchased are, in fact,
Made In the USA, are fighting back against this kind of false
labeling by bringing class action lawsuits in appropriate
situations.
Join a free Made In USA false labeling lawsuit investigation.
If you purchased a product labeled Made In USA but you believe the
components were not from the USA, you may be entitled to
compensation. Contact us for a free case evaluation.