There are lots of nifty phone accessories, bottle holders, tow straps, pet supplies, and lanyards out there. Therefore, labels indicating that a product is “Made in the USA” may help some consumers make their decisions. When it features an American flag and says “Really Made in the USA,” that might seal the deal. But according to the FTC lawsuit, many of the “Made in the USA” items touted by Logan, Utah-based EK Ekcessories aren’t actually made in the United States — changing the company’s claims from “Yankee Doodle Do” to “Yankee Doodle Don” doesn’t.
EK Ekcessories sells a variety of outdoor gear through popular retailers and its own website. In addition to the label, the company touts the American origins of its products, with statements such as “For 28 years EK Ekcessories has been producing quality accessories at our 60,000 square foot facility in Logan, Utah” and “A source of pride for us.” statement. A true ‘Made in the USA’ product brings great satisfaction. “
For an item to be made in the United States, all or nearly all of it must be made in the United States. In other words, all significant parts and processing must originate in the United States, and the product should contain no or negligible foreign ingredients. This is the standard explained in the FTC’s 1997 Policy Statement on the Enforcement of U.S. Origin Claims. But according to the complaint, in many cases the “Made in the USA” statements made by EK Ekcessories were simply false. In other cases, the FTC said the company put labels on products without a reasonable basis. Both actions violate the Federal Trade Commission Act.
Under the proposed order, the company cannot say a product is made in the United States unless all or substantially all of the product is indeed made in the United States. The order also bans other misleading claims about a product’s country of origin.
Because other companies are selling deceptively labeled merchandise, EK Ekcessories must contact all dealers who purchased or received products between January 1, 2010, and May 1, 2013, to explain the FTC’s lawsuit. Retailers will be required to withdraw marketing materials that state that all EK Ekcessories merchandise is made in the United States, or that describe specific product listings that describe American manufacturing, U.S. origin, or “True American Made.” For some product lines, they put stickers on them to cover up inaccurate claims.
You may submit comments on the proposed settlement online until November 21, 2013.
A message to marketers? first, now is a good time to brush up on how to adhere to American manufacturing standards. The business center has a dedicated “Made in the USA” page to make it easier for you to do all this. secondGiven the importance many consumers place on the “Made in America” claim, companies that make claims that are false or have no reasonable basis will be at risk of enforcement action. really.
