FTC Acts on False “Made in USA” Claims by Clothing Companies

Recently, Thomas Bates, the owner of many clothing accessory businesses in Massachusetts and New Hampshire, and the Federal Trade Commission (FTC) came under fire. They are charged with misleading customers by making false representations regarding their items’ “Made in the USA” status. The FTC has emphasized that “Made in the USA” should refer to products that were manufactured in the nation because false labeling is harmful to consumers and fair competition.
False “Made in USA” Claims Uncovered
The FTC has made it a major priority to implement the Made in USA Labelling Rule, which went into effect on August 13, 2021. This implies that businesses that are caught breaking the law after this date risk penalties.
The complaint filed by the FTC claims that Chaucer Accessories, Bates Accessories, and Bates Retail Group routinely marketed their products as being “Made in the USA” or “Hand Crafted in the USA.”
The study, however, showed that these assertions were untrue because the businesses either imported all of their products or heavily relied on imported components.
On closer inspection, it was found that although certain belts were marked “Made in USA from Global Materials,” the belt straps were really imported from Taiwan and the buckles were put on there.
Clear Criteria for Future Claims
The Commission unanimously endorsed the administrative complaint and consent agreement. To stop similar dishonest practices, the decree contains stringent criteria for any future claims made by the businesses and Thomas Bates.
Qualified claims must make it plain and obvious how much of the product is made of foreign materials, substances, or processes. A product must also undergo significant alteration during the assembly process in order for it to be claimed to have been assembled in the US, with the majority of assembly operations occurring in the nation.