Cases & Investigations
"Made In USA" False Labeling
Type: Investigations
Product(s): Consumer Claims That Companies Are Falsely Labeling Their Products “Made In The USA”.
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:
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.
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.
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