Two Companies That Made Misleading 'Made-in-the-USA' Claims Settle FTC Charges
these actions are part of the FTC's ongoing work to curb false and misleading claims about products labeled as Made in the USA
The Federal Trade Commission (FTC) has approved final consent orders settling charges that iSpring Water Systems, LLC, a Georgia-based distributor of water filtration systems, and Block Division, Inc., a Texas-based distributor of pulley block systems, made misleading 'Made-in-the-USA' claims.
First announced in February 2017, the FTC's complaint against iSpring alleged that the company's unqualified claims that its products are built in the United States deceived consumers. In many instances—despite iSpring's false, misleading or unsupported claims—its products either are wholly imported or are made using a significant amount of inputs from overseas, according to the complaint.
First announced in March 2017, the FTC's complaint against Block Division alleged that for a period of several years, the company's pulleys featured imported steel plates that were stamped with Made in USA before they entered the United States. The complaint also alleged that Block Division used unqualified Made in USA claims in advertising to represent that these pulley blocks, other products, and the parts used to make them, were al—or virtually all—made in the United States. In fact, the complaint states, the company's products include significant imported parts that are essential to their function.
The FTC says that these actions are part of its ongoing, multi-faceted work to curb false and misleading claims about products labeled as Made in the USA. The Commission has an Enforcement Policy Statement on U.S. Origin Claims and other business guidance on how companies can comply with the Made in the USA standard.
The FTC's Made in the USA page features cases, instructive closing letters, and the brochure Complying with the Made in USA Standard, which answers many of the questions that companies ask.