The “Made in USA” label carries a strong appeal for many shoppers who want to support domestic jobs and products. However, not all companies using this label are telling the truth. In recent years, the Federal Trade Commission (FTC) has fined several retailers for falsely advertising imported goods as American-made. These violations not only mislead customers but also create unfair competition for businesses that do follow the rules. Here are ten notable cases where retailers were penalized for deceptive labeling.
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1. Williams-Sonoma
In 2020, Williams-Sonoma paid a settlement after the FTC found that several of its branded home products were labeled as “Made in USA” despite being manufactured overseas. The case prompted the company to update its product labeling and marketing practices.
2. Lions Not Sheep Apparel
This Utah-based clothing brand was fined in 2022. The fine was for removing origin tags from foreign-made clothing and replacing them with “Made in USA” labels. The FTC imposed a fine and required the company to disclose the actual origin of its products.
3. Chemence, Inc.
An adhesives company was fined for claiming their products were fully made in the U.S.. However, they failed to mention sourcing components of their product from abroad. The case led to a permanent injunction and a financial penalty for misleading labeling.
4. Patriot Puck
This hockey puck manufacturer faced legal action for falsely claiming their pucks were made in the USA. In reality, they were imported from China. The FTC ordered a cease and desist order and implemented corrective measures.
5. New Balance (Partial Case)
While New Balance manufactures some products domestically, the company has faced scrutiny for advertising shoes as “Made in USA” when only a portion of materials and labor qualify. Although not fined, they were urged to clarify their labeling.
6. iSpring Water Systems
This home water filtration company was fined for making unverified claims that its products were made in the U.S. Many components were sourced from China, violating FTC rules.
7. Sandpiper of California
A military gear supplier faced enforcement for using false Made in USA claims on backpacks and accessories that were imported. The FTC issued a strong warning and required clear labeling going forward.
8. E.K. Ekcessories
This Utah company was fined after claims that its outdoor gear was made domestically when large portions were sourced internationally. The settlement included a fine and long-term monitoring.
9. Gennex Media
The FTC took action against Gennex for falsely marketing promotional products such as mugs and t-shirts as U.S.-made. The items were primarily imported from Asia.
10. Resident Home LLC
This mattress and home goods retailer faced a complaint for misleading claims on its websites, leading to a financial settlement and labeling reforms.
The Made in USA label can be powerful, but it’s only meaningful when used truthfully. These recent enforcement actions show that false claims can come at a serious cost to businesses. For consumers, it’s a reminder to research products carefully and look beyond the packaging to understand where items are truly made.
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