March and April were very busy months for the Federal Trade Commission’s Office of Consumer Protection staff who focus on “Made in USA” enforcement. Indeed, FTC issued seven “closing letters” to companies during a three-week period, in which FTC closed out its investigations involving allegations that each company “overstated the extent to which” the products in each case were made in the United States. In each case, the FTC closed out the investigation based on the company’s agreement to implement a remedial action plan, including but not limited to such actions as removing unqualified US-origin claims from websites and social media and providing corrected qualified claims to third-party resellers and distributors. This flurry of activity began on March 14, 2017 and ended on April 5, 2017, as follows:
Blog Posts by Scott A. Cohn
On Monday, November 30, 2015, Nordstrom and denim manufacturer AG Adriano Goldschmied filed a motion to approve a settlement in California federal court, agreeing to pay more than $4 million to settle a consumer class action suit that accused them of falsely labeling jeans as “Made in USA.” The settlement was agreed upon in October 2015 after over a year of intense litigation.
Plaintiffs brought the case against both the manufacturer, AG, and the retailer that sold AG jeans, Nordstrom, and alleged various claims under the California consumer protection laws and business and professions code. The class action claimed that AG jeans’ fabric, thread, buttons, rivets, and certain subcomponents of the zipper assembly were manufactured outside of the United States.
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