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Made in USA Lawsuits


The Lyon Firm is investigating false advertising and misleading Made in USA claims on behalf of consumer nationwide
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Why Do You Need a Consumer Protection Attorney?

The class action deceptive marketing lawyers at The Lyon Firm are investigating new claims of falsely representing products made abroad as Made in USA. These are common misrepresentations, and many lawsuits have been filed by plaintiffs who claim companies make the majority of a product outside the United States and label it as made domestically.

Contact our legal team to discuss the legality of misleading labeling and deceptive marketing schemes. You have legal rights as a consumer, and if a company blatantly misrepresents a product made overseas as “Made in the USA,” you may have legal grounds to file a formal complaint and seek compensation.

What it means to be Made in USA?

The global supply chain has complicated labeling matters for consumers, and it is frequently unclear where a product is produced, assembled, and packaged. According to the standard guidelines set by the Federal Trade Commission (FTC), Made in USA is meant to describe an instance where “all or virtually all” of the product has been made domestically in America. That means that the vast majority of raw materials, designing, processing, and labor must be of domestic origin in order to label a product as such.

Can the product use Canadian raw materials? Can it be sent from China in a raw form, then molded and processed? The law says they cannot if they want to be labeled as a domestic product. But there are other gray areas, and it has even been argued that the word “made” is too ambiguous to be able to define what it denotes in these cases. There are several moving parts in the global supply chain and that is why it is more common to go to a shop and see the majority of products are labeled as made abroad.

The FTC has tried its best to be clear and concise with these legal questions. Essentially, to be labeled “Made in USA,” a product’s last “substantial transformation” must occur in the United States. That is to say, a product’s final form and most critical processing steps should occur in the U.S.

Due to trade complexities, the FTC sometimes updates its “Complying with the Made in USA Standard.” The FTC last made updates to add the Made in USA Labeling Rule, which codified the ​“all or virtually all” standard for product labels in 2021. This is all clearly spelled out for business practices, and negligent corporations may be subject to civil penalties if they make false ​“Made in the USA” claims on labels or in marketing materials.

The last updated FTC requirements note the following:

  • The product’s final assembly or processing must occur in the USA;
  • All significant processing that goes into the product must occur in the USA; and
  • All or virtually all ingredients or components of the product must be made and sourced in the USA.

Can You File a Made in USA Lawsuit?

Made in USA lawsuits have been filed against several companies that allegedly falsely labeled their products as being produced in the United States. Consumers do not have time to scrutinize and research every item they purchase and have to rely on the companies’ good faith to fairly and honestly label their products. The law now stipulates that companies should err on the side of caution and not test the waters with potentially false claims in promotional materials and product labels.

Companies should be aware of federal and state consumer laws, and they have a duty make sure their claims remain accurate. It has been common practice for American companies to outsource and move some or all of their production, assembling and packaging outside of the country. These kinds of changes must be reflected in marketing materials and labeling.

There can be significant confusion in these matters, but typically a reasonable consumer should be able to understand at first glance where a product is produced. And if a product includes both foreign and domestic parts, that should be noted, and the companies must be able to show clearly that the “domestic” parts are made in the USA.

If you believe you have been misled into believing that you purchased a product made in the USA, but it was made or assembled elsewhere, you may have a valid claim. Contact our attorneys for a free case review.

When companies place profits before transparency, and engage in deceptive marketing, they may be held liable in false advertising class action lawsuits. Practices like mislabeling products, or otherwise violating consumer protection laws, are unacceptable betrayals of trust. You can help hold these companies accountable.

The Lyon Firm is a highly-rated product liability and consumer safety law firm headquartered in Cincinnati, Ohio. We represent plaintiffs nationwide in individual claims and consumer safety class action lawsuits.

If you need consumer protection representation, contact our offices today at (513) 381-2333 for a free, confidential, no-obligation consultation.

CONTACT THE LYON FIRM TODAY

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ABOUT THE LYON FIRM

Joseph Lyon has 17 years of experience representing individuals in complex litigation matters. He has represented individuals in every state against many of the largest companies in the world.

The Firm focuses on single-event civil cases and class actions involving corporate neglect & fraud, toxic exposure, product defects & recalls, medical malpractice, and invasion of privacy.

NO COST UNLESS WE WIN

The Firm offers contingency fees, advancing all costs of the litigation, and accepting the full financial risk, allowing our clients full access to the legal system while reducing the financial stress while they focus on their healthcare and financial needs.

A man with blond thinning hair and glasses carefully examines the words on a product in the grocery store aisle.

Class Action Lawsuit FAQs

Why File a Class Action?

Class actions are typically filed when the amount of money in dispute for a single plaintiff would not justify the expense of litigating the case, but where the amount of damages of the entire class of plaintiffs would justify the cost of litigation. Basically, it’s more cost-effective to get justice for many at once instead of individually, saving everyone massive amounts of time and effort.

Moreover, without class actions, large corporate defendants would be able to cause harm over a large group of individuals without any risk of penalty. These collective cases provide safety in numbers.

What are some notable Made in USA Settlements?
  • The Federal Trade Commission (FTC) settled with Williams Sonoma for $3.17 million for falsely labeling products as “Made in USA.” The FTC sued Williams-Sonoma for falsely advertising several product lines under its Goldtouch, Rejuvenation, Pottery Barn Teen and Pottery Barn Kids brands.
  • PepsiCo was recently hit with a class action, alleging the company’s Pure Leaf tea was falsely labeled as “Brewed in USA,” despite containing foreign-sourced tea leaves. The plaintiff argues that the labeling misleads consumers into believing the products are made entirely domestically. This goes to show that even the world’s largest companies push the boundaries on FTC regulations.
  • Kubota paid $2 million to settle a civil case for allegedly falsely labeling tractor replacement parts as “Made in USA.” The parts were allegedly made entirely overseas.
  • Nordic Ware was sued for deceptive marketing after their advertising materials for their aluminum bakeware included images of the American flag, allegedly misleading consumers who prefer to buy American-made goods. The aluminum used in the Nordic Ware bakeware is sourced from Canada, and the raw material for aluminum, bauxite, is primarily imported from countries like Australia, Guinea, India, Brazil and Jamaica.
  • Reynolds Wrap was named as a defendant in a deceptive labeling lawsuit alleging that their labels suggested the products were made domestically.
  • The Federal Trade Commission sent refunds to more than 10,000 customers who bought Pyrex measuring cups that manufacturer Instant Brands falsely labeled.