Assembled in America from imported parts?
Manufacturers and marketers of most products aren’t required to disclose where the products are made (automobiles and textile or wool products are exceptions). But if a company wants to appeal to people who prefer to buy American-made products by labeling them “Made in USA,” it better make sure that’s true or the FTC may come calling.
One of the most brazenly bogus claims was made by a company that manufactures pulley blocks used in a variety of lifting applications. Steel plates saying “Made in USA” were affixed to the products before they ever entered this country from overseas.
Most consumers don’t know what a pulley block is, but everyone uses the kinds of home products and kitchen wares sold by Williams-sonoma. The company has run afoul of Made in USA rules twice in the past few years. In 2018, the FTC received reports that the company was advertising its Pottery Barn Teen organic mattress pads as “Crafted in America from local and imported materials” when they were actually made in China. The FTC closed the investigation with no further action after the company explained the misrepresentation was an isolated incident of human error and committed to taking steps to verify such claims in the future.
But it appears that commitment didn’t last long. In July, Williams-sonoma settled new charges that it made misleading claims about where many of its products are made. They include its Goldtouch Bakeware line as well as Rejuvenation-branded products and Pottery Barn Teen and Pottery Barn Kidsbranded
upholstered furniture products.
The FTC says that such claims as “Made Right in America” represented expressly or by implication that the products are all or virtually all made in the United States. In fact, according to the FTC, many products were wholly imported or contained significant amounts of materials or components that were imported. Williams-sonoma paid $1 million as part of the settlement.
The FTC says “Made in USA” means that all or virtually all of the product has been made in America. That includes significant parts and the processing and labor that go into making it. There should be no or negligible foreign content. In its guidance to businesses about Made in USA claims, the FTC says they can be express or implied. For example, touting the “true American quality” of products can be misleading if they’re produced overseas. And a company should not make a blanket statement that “our products are made in the USA” when only some are.
The agency also offers guidance on making qualified statements like “Made in USA from Imported Parts” or “Assembled in USA.” In its settlement with the FTC, Williams-sonoma agreed that any qualified Made in USA claims would include a clear-and-conspicuous disclosure about the extent to which the product contains foreign parts and/or processing.
If it’s important to you that a product be made in America, make sure the manufacturer and seller are trustworthy and read labels carefully to pick up on any qualifications. You can also look for third-party certifications, but should take them with a grain of salt. The FTC landed on an outfit that certified other companies’ claims that their products were made here without ever independently evaluating or rejecting one.