FTC on gluing companies: adhere to established “Made in America” ​​principles

This sentence is only nine letters long, but for many consumers it makes the difference between what’s in the shopping basket and what’s on the shelf. It’s “Made in the USA” and the Federal Trade Commission just announced a settlement in its lawsuit against Chemence, Inc. for misleading “Made in the USA” claims. If your company makes similar statements, is it time for a compliance check?

Georgia-based Chemence makes Kwik Fix, Hammer Tite and Krylex Glues – fast-acting glues made from cyanoacrylate. The FTC sued Chemence in February 2016, alleging that the company’s claims that its cyanoacrylate glues were “Made in the USA” or “proudly made in the United States” indicated that the products were all or nearly all made in the United States.

According to the FTC, when you look at the chemicals, including those critical to the glue’s functionality, you’ll find that 55% of the cost of these substances is imported, making the company’s “Made in the USA” claims misleading. The FTC also alleges that Chemence assisted others to deceive consumers by distributing marketing materials to private label sellers and third-party websites and storefronts that included misleading “Made in the USA” claims.

The settlement includes $220,000 in financial compensation and requires Chemence to change the way it advertises its products. The order prohibits the company from making unqualified “Made in the USA” claims for any product unless it can demonstrate that final assembly or processing and all significant processing occurred in the United States, and that all or substantially all ingredients or components are manufactured and sourced in the United States. The order also prohibits Chemence from providing others with the means to make deceptive “Made in the USA” claims about its products.

What about qualified claims? According to the order filed in federal court in Cleveland, Chemence can assert a qualified “Made in the USA” claim only if those representations clearly disclose the extent to which the product contains foreign parts, ingredients or processing.

Does your company make “Made in the USA” claims on its products or packaging, in advertising, on its website, or in marketing materials? Please read the FTC’s Enforcement Policy Statement on U.S. Origin Claims for compliance guidance.