David Leask
New member
For Release: January 19, 1999
Major U.S. Manufacturers Agree to Settle Charges of Making Misleading "Made in USA" Claims
The Federal Trade Commission today announced settlements with six companies that would resolve allegations that the companies made misleading
"Made in USA" claims for a variety of products. The FTC has charged that The Stanley Works, American Honda Corporation, Kubota Tractor Corporation, Johnson Worldwide Associates, Inc., USDrives Corporation, and Rand International Leisure Products, Ltd. misrepresented that certain of their products are made in the United States, i.e., that all, or virtually all, of the parts of the products are made in the United States, and the labor in manufacturing the products is performed in the United States. According to the FTC, these representations were false or misleading because these products were actually made with significant foreign components or labor. In each of the cases, the proposed settlement would prohibit the companies from misrepresenting the extent to which their products are made in the United States.
In December 1997, after a comprehensive policy review, the FTC concluded that "Made in USA" advertising and labeling claims will continue to conform to the "all or virtually all" standard that traditionally has been applied by the Commission. Under this standard, voluntary, unqualified U.S. origin claims must be substantiated by evidence that a product is "all or virtually all" made in the United States. In addition, the agency issued an Enforcement Policy Statement outlining the factors the Commission will consider in determining whether a U.S. origin claim is "deceptive." In December 1998, the FTC issued a new business guide: "Complying with the Made in USA Standard" that describes the principles of the FTC's law and policy governing such claims and uses examples to help businesses comply with the law.
THE CASES:
The Stanley Works, incorporated in New Britain, Connecticut, is a manufacturer and marketer of tools, hardware, doors, and home decor products for professional, industrial, consumer, and home improvement use. Stanley manufactures mechanics tools with the brand names "Husky" (which Stanley manufactures for sale by Home Depot) and "Proto" (which Stanley sells to industrial distributors who in turn sell to industrial and professional end-users). According to the complaint, Stanley stamped many of these mechanics tools with a "USA" mark, advertised them as "Made in USA," and sold them in packages marked "Made in USA." Nevertheless, certain models of Stanley's mechanics tools, including combination wrenches, standard sockets, teardrop ratchets, and sets containing combination wrenches and standard sockets, were not all or virtually all made in the United States. Significant proportions of their content was of foreign origin. The proposed agreement would order Stanley to stop misrepresenting the extent to which Stanley's mechanics hand tools are made in the United States.
The FTC's investigation of Stanley Works was conducted in close cooperation with the offices of the Connecticut and Missouri Attorneys General.
Media Contact:
Howard Shapiro,
Office of Public Affairs
202-326-2176
Staff Contact:
Elaine Kolish or Laura Koss
Bureau of Consumer Protection
202-326-3042 or 202-326-2890
Major U.S. Manufacturers Agree to Settle Charges of Making Misleading "Made in USA" Claims
The Federal Trade Commission today announced settlements with six companies that would resolve allegations that the companies made misleading
"Made in USA" claims for a variety of products. The FTC has charged that The Stanley Works, American Honda Corporation, Kubota Tractor Corporation, Johnson Worldwide Associates, Inc., USDrives Corporation, and Rand International Leisure Products, Ltd. misrepresented that certain of their products are made in the United States, i.e., that all, or virtually all, of the parts of the products are made in the United States, and the labor in manufacturing the products is performed in the United States. According to the FTC, these representations were false or misleading because these products were actually made with significant foreign components or labor. In each of the cases, the proposed settlement would prohibit the companies from misrepresenting the extent to which their products are made in the United States.
In December 1997, after a comprehensive policy review, the FTC concluded that "Made in USA" advertising and labeling claims will continue to conform to the "all or virtually all" standard that traditionally has been applied by the Commission. Under this standard, voluntary, unqualified U.S. origin claims must be substantiated by evidence that a product is "all or virtually all" made in the United States. In addition, the agency issued an Enforcement Policy Statement outlining the factors the Commission will consider in determining whether a U.S. origin claim is "deceptive." In December 1998, the FTC issued a new business guide: "Complying with the Made in USA Standard" that describes the principles of the FTC's law and policy governing such claims and uses examples to help businesses comply with the law.
THE CASES:
The Stanley Works, incorporated in New Britain, Connecticut, is a manufacturer and marketer of tools, hardware, doors, and home decor products for professional, industrial, consumer, and home improvement use. Stanley manufactures mechanics tools with the brand names "Husky" (which Stanley manufactures for sale by Home Depot) and "Proto" (which Stanley sells to industrial distributors who in turn sell to industrial and professional end-users). According to the complaint, Stanley stamped many of these mechanics tools with a "USA" mark, advertised them as "Made in USA," and sold them in packages marked "Made in USA." Nevertheless, certain models of Stanley's mechanics tools, including combination wrenches, standard sockets, teardrop ratchets, and sets containing combination wrenches and standard sockets, were not all or virtually all made in the United States. Significant proportions of their content was of foreign origin. The proposed agreement would order Stanley to stop misrepresenting the extent to which Stanley's mechanics hand tools are made in the United States.
The FTC's investigation of Stanley Works was conducted in close cooperation with the offices of the Connecticut and Missouri Attorneys General.
Media Contact:
Howard Shapiro,
Office of Public Affairs
202-326-2176
Staff Contact:
Elaine Kolish or Laura Koss
Bureau of Consumer Protection
202-326-3042 or 202-326-2890