The Federal Trade Commission released two closing letters in June -- and both relate to "Made in USA" claims. It's not surprising, since that's the subject of the great majority of the FTC's closing letters. (Of course, if the FTC's proposed "Made in USA" rule is adopted, we may start to see a different approach to enforcement.)
Under the FTC's current Enforcement Policy Statement on U.S. Origin Claims, in order to make an unqualified claim that a product is made in the United States, the marketer must be able to substantiate that the product is "all or virtually all" made here.
On June 16th, the FTC sent a closing letter to Merrill Manufacturing, expressing concerns that the company's marketing materials may have overstated the extent to which certain yard hydrants and water well accessories are made in the United States. The FTC noted that while some of the company's products are made here, others are either wholly imported or contain significant imported content.
On June 24th, the FTC sent a closing letter to Bihler of America (which also does business as Bihlerflex, Perfect Bungee, and Jersey Dog Co.), expressing concerns that the company's marketing materials may have overstated the extent to which all products advertised on the company's websites are made in the United States. The FTC said that, although Bihlerflex sells some U.S.-origin bungee and pet products, it also sells other products, including the ShockStrap, that incorporate significant imported parts. In what has become a continuing theme in the FTC's "Made in USA" closing letters, the FTC emphasized, "marketers should not represent, either expressly or by implication, that a whole product line is of U.S. origin (e.g., 'Our products are Made in USA') when only some products in the product line are, in fact, made in the United States."
In both cases, the advertisers agreed to take remedial action to ensure that consumers were not deceived in the future.
Originally published 01 July, 2020
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