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March 15th, 2012
FTC Concludes Investigation Concerning “Made in USA” Claims
The Federal Trade Commission ("FTC") has closed its investigation into whether advertising claims made by Lucky Brand Dungarees, Inc. ("Lucky") violated the FTC Act. The FTC investigated whether Lucky made false claims that its clothing was "hand crafted in America," "born in America," and "made in the United States." Advertisers that make express or implied claims that products are made in the United States must comply with the FTC's "Complying with the Made in USA Standard" business guides. The "Made in USA" guides require unqualified U.S. origin claims to be substantiated by evidence that a product is "all, or virtually all," made in the United States.
In its closing letter, the FTC cited several reasons for its decision to end the investigation, including that Lucky had removed all references to "hand crafted in America" and "born in America" and had corrected all incorrect statements that its products were "made in the United States."
If you have any questions about this investigation or the FTC's made in USA standards, please contact Jeffrey Greenbaum at (212) 826 5525, jgreenbaum@fkks.com, or any other member of the Frankfurt Kurnit Advertising Group.
Disclaimer. This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.
Other Advertising Law Alerts
What the Advertising Industry Can Learn from Kim Kardashian’s Settlement with the SEC
On October 3, 2022, the Securities and Exchange Commission (SEC) announced that it entered into a $1.26 million settlement with Kim Kardashian over her social media promotion of the EMAX token without disclosing payment she received from token issuer, EthereumMax. The matter provides important lessons for advertisers. Read more.
October 10 2022
Get Ready for California’s New “Automatic Renewal” Rules
California recently amended its Automatic Purchase Renewals law. The amended statute - effective July 1st -- require marketers to provide consumers of automatic renewal or continuous service offers with more information and easier ways to terminate. Read more.
June 22 2018
“Made in the U.S.A.” Claims Continue to be Scrutinized
In 2016, California amended Section 17533.7 of the California Business and Professions Code ("Section 17533"), liberalizing the standard for selling products labeled "Made in U.S.A" to California consumers. Read more.
June 4 2018
