Tag Archive for: FTC

Misrepresentation and False Claims: Albion Fined False Made In USA Claims

The recent legal repercussions faced by Albion Engineering Corp. for false ‘Made in USA’ claims highlight a critical aspect of consumer trust and market integrity. With a substantial $2 million fine imposed by the U.S. District Court, the case reveals the gravity of misleading product origin declarations.

As the lawsuit unfolds, it prompts reflection on the broader implications of deceptive marketing practices and their impact on businesses and consumers.

Stay tuned to discover how this legal action is a cautionary tale for companies managing the delicate balance between competitiveness and ethical transparency in the marketplace.

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Kubota Slapped With Historic Penalty for False 'Made in USA' Claims

In recent times, Kubota North America Corporation, a prominent player in the tractor and heavy equipment manufacturing industry, has been handed a hefty $2 million civil penalty by the Department of Justice. This penalty, the result of a legal wrangle involving allegations of misrepresenting the origins of replacement parts, has been dictated by the Federal Trade Commission (FTC).

The FTC claims that Kubota has breached the Made in USA labeling rule, asserting that the company failed to amend product labels to denote the true origins of parts accurately. This instance is not the first of its kind, as it echoes a similar violation by a Kubota subsidiary in 1999.

It’s critical to note that Kubota is displaying an active commitment to resolving these issues, cooperating fully with the U.S. government and putting into place improved labeling accuracy measures. Such an unprecedented case brings into question the broader implications for other manufacturers and the enforcement of the Made in USA Labeling Rule.

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What does “MADE IN USA” mean?

There is so much discussion these days around the MADE IN USA label.  What does it take to use the label “Made in USA” and can you trust it when you see it? 

This article will tell you everything you need to know.

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FTC, Know The Difference Between Made in USA and Assembled in USA?

Know The Difference Between Made in USA and Assembled in USA

Made in USA. Three little words with a not-so-little impact! Read more

The FTC approved charges that two companies made misleading Made in USA claims

FTC Approves Final Consents Settling Charges On Misleading Made in USA Claims

Following public comment periods in two separate cases, the FTC (Federal Trade Commission) has approved final consent orders settling charges that iSpring Water Systems, LLC, a Georgia-based distributor of water filtration systems, and Block Division, Inc., a Texas-based distributor of pulley block systems, made misleading Made-in-the-USA claims. Read more

Towels in US Marriott Hotels to Be Made in USA, American Made: What is it & Why It Matters

American Made: What is it & Why It Matters

American Made LabelHistorically there has been a lot of hype around the American-made topic, but there is a heightened awareness in recent years, which has drawn more attention to this subject now more than ever. This is primarily due to reshoring by major manufacturers, the US Government with SelectUSA and STEM programs, and all of the issues we face with counterfeiting and sub-par products.

Almost every day, I find an article or a label that says, “Made in USA” or “American made.” Products I see with the Made in USA label range anywhere from batteries, hand tools, and hardware, to outdoor furniture and household appliances, to groceries and dog food — not to mention the Made in USA mandate for many government-driven programs. This is similar to every time I communicate with my wife and kids because whenever there is a lot of talk, there are also a lot of misunderstandings, misstatements, and misconceptions.

Related: Buying American Made: Ways To Express Your Values with Your Pocket Book

What exactly is American-made, and why does it matter?

If we want to get technical, American-made can mean many things. Is it South American-made? North American-made? Is it made in Mexico? What is it?

What exactly is Made in USA?

According to the Federal Trade Commission, a product is made in the USA if it is “all or virtually all” made in the USA. What does “all or virtually all” mean? That phrase “means that all significant parts and processing that go into the product must be of US origin. That is, the product should contain no — or negligible — foreign content.” My interpretation is that, most importantly, you be honest. Say so if it is made in the USA with domestic and imported components. Say so if it is manufactured in the USA and packaged in Mexico. Say so if it is designed and assembled in the USA but manufactured in China.

Now on to the heart of the subject, why does it matter? Why should I care? I want the best price … It matters more than we accept.

RELATED: If you are a manufacturer, a service provider, a producer of goods, or if you employ American citizens and are creating jobs, find out how a MAM partnership will help you

Why it matters

  1. The manufacturing powerhouse After WWII, the US was almost 50% of the global economy, bringing manufacturing to its peak. We produced 80% of the world’s automobiles during America’s manufacturing peak. Almost all of the products we used were manufactured in the US. We manufactured steel, textiles, furniture, planes, appliances, and shoes, to name a few. Well, since 2001, more than 56,000 factories have left the US. Now, I am not suggesting every single product we use needs to be manufactured here in the US, but we need to be and remain the world’s manufacturing powerhouse.
  2. Manufacturing employs people — At its height, US manufacturing employed more than 19 million people. Over the last couple of decades, along with losing our factories, we have lost our jobs. According to the National Association of Manufacturers (NAM) and the Bureau of Labor Statistics (BLS), manufacturing in the US currently employs just over 12 million people. Although losing more than 7 million jobs is alarming, what is more alarming is that, unlike the service sector, for every manufacturing job, there are approximately 1.6 jobs created.  For example, in The American-Made Movie, we see the Louisville Slugger, an American-made product supporting a great American tradition. To create one baseball bat, there are loggers to cut trees, truck drivers to deliver them to the mill, mill workers to create billets, truck drivers to deliver them to the factory to manufacture the bats, marketers to market them, and retailers to sell them. Manufacturing employs people.
  3. Manufacturing keeps the US competitive — According to the NAM review of National Science Foundation reports, manufacturers in the US perform two-thirds of all private sector R&D in the nation, driving more innovation than any other sector. Our engineers, techs, and science professionals keep us abreast of technological advancements and developments.

What are your thoughts? Does it matter to you? Does it matter enough to consider a change? Let us know in the comments below.

Need help to find things that are Made in USA? Check out a few of our favorite places to shop.

Do you have a favorite brand or shop? Let us know! We are always looking for new brands to celebrate. S

Did you know that buying Made in USA has a more significant impact than you know? Click for top 4 reasons. 

Learn how you can become a MAM brand ambassador and help support the Made in America Movement.

See the MAM Approved top companies that are Made in USA:

Made in the USA? 9 tips for finding certified American products, how do you know if it's made in usa

Made in USA? Tips for Finding Certified American Products

As it turns out, a flag label doesn’t guarantee that a product was born in the “land of the free and the home of the brave.” A recent Consumer Reports survey found that 8 out of 10 consumers would rather buy a domestically made product than an imported one, but it’s difficult to figure out which are the frauds. Read more

made in usa label, products made in usa, what's made in usa, Manufacturer’s Definition of ‘Made in USA’ Costs Big Bucks, Made in USA Appliances

Manufacturer’s Made in USA Definition Costs Big Bucks

As companies “tiptoe” back to the United States from overseas, the “Made in USA” label should grow more common. However, ambiguous rules are costing some manufacturers hundreds of thousands of dollars in penalties and legal fees. So what’s the problem? The coveted “Made in USA” does not always mean the same thing to companies as to the Federal Trade Commission.  Read more

California now allows firms to tell consumers a 'made in USA' lie

California Now Allows Firms to Tell Consumers a Made in USA Lie

California long required that any manufacturer wanting to say that a product is made in America must, in fact, have a product that’s made in America. Read more

California Governor Loosens Definition of Made in USA for Products

California Governor Loosens Definition of Made in USA for Products

California companies must now actually make their products in the U.S. to call them American-made.

Mostly. Read more