A marketer of iPhone accessories and other products recently settled Federal Trade Commission ("FTC") charges that the company made false claims that its products are made in the United States.
The FTC alleged that E.K. Ekcessories ("E.K.") advertised that its products - marketed directly to consumers on E.K.'s website, as well as online on Amazon.com and REI.com - were "Made in the U.S.A," "Truly Made in the USA," and made in their "60,000 sq. ft. facility in Logan, Utah," even though the company allegedly imported many of its products and product components from foreign countries. Advertisers that make express or implied claims that products are made in the United States must comply with the FTC's ''Made in USA'' Standard Business Guides. These Guides require unqualified U.S. origin claims to be substantiated by evidence that a product is "all, or virtually all," made in the United States.
Under the FTC's proposed order with E.K., the company may not claim that its products - or any components thereof - were made in the United States unless those products or components were, in fact, all or virtually all made in the United States. The order also forbids E.K. from making misleading claims about the country of origin of its products and from supplying any third party retailers (including Amazon.com and REI) with deceptive promotional material.
This settlement follows other recent FTC enforcement in this area (see, e.g. FTC Letter to PetSmart and FTC Letter to Little Giant).
This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.
