‘Tis the season for retailers to set best practices to avoid class actions, regulatory enforcement actions, and competitor claims. Ring in the new year with these top five U.S. advertising and marketing law takeaways.
Ad Law Resolutions for 2022
FTC Gives Teeth to Made in USA Enforcement
Earlier this month the Federal Trade Commission formally codified its long-standing Made in USA guidelines into a formal rule that will go into effect August 13, 2021. The law is consistent with prior guidelines
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FTC and Glue Maker Reach $1.2 Million Settlement Over Deceptive “Made in USA” Claims
Key Takeaways:
- The FTC’s Enforcement Policy on S. Origin Claims and related compliance guide apply to advertising of “Made in USA” or similar U.S. origin claims, including manufacturer advertisements of private label products to trade customers who will later market and sell such products under retail brand names.
- The $1.2 million settlement is the largest obtained by the FTC in a Made in USA case and reinforces prior signals that the agency will continue to seek monetary penalties when enforcing against allegedly deceptive Made in USA
$1 Million Settlement Announced in FTC’s “Made in USA” Enforcement Against Williams-Sonoma
The FTC has announced a settlement with furniture and houseware seller Williams-Sonoma, requiring it to cease making unsubstantiated “Made in USA” claims about its products and pay $1 million to the FTC.
Williams-Sonoma previously received a warning letter from the FTC in 2018 regarding its “crafted in America from local and imported materials” mattress pad claims because the pads were purportedly crafted in China. Williams-Sonoma promptly corrected its advertising and agreed to review their country-of-origin verification process. In response, the FTC closed the matter without further action.
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Happy Holidays and a Look Ahead
It’s been a busy year in consumer protection law and during this holiday season, we’re taking stock of the past year and looking ahead to what’s next. In 2018, we saw many class actions related to pricing practices, scrutiny of Made in USA claims, continued growth in popularity and the evolution of influencers (
Made in USA: The FTC Moves Against Two More Retailers
Key Takeaway:
Companies making Made in USA claims should adhere to Federal Trade Commission guidance and state law, as such claims are likely to draw attention from regulators and class action plaintiffs. Additional detail on regulatory compliance can be found in our prior post.
Deceptive Made in USA advertising continues to draw attention from the FTC. The FTC recently settled with hockey puck producer Patriot Puck and recreational equipment sister companies Sandpiper and PiperGearUSA regarding their allegedly false Made in USA claims. This brings the total number of FTC enforcement actions arising from misleading U.S.-origin claims to 25 since 1999, with six of those actions having been initiated since April 2017.[1]
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Made In USA: Increasing Challenges to False or Misleading U.S.-Origin Claims (Repost)
Consumers notice and are more likely to buy products that are marketed as Made in USA, but companies face significant legal risk, negative publicity, and decades of government oversight if they overstate the extent to which their products are made in the United States.
- Companies marketing their products without qualification as Made in USA
National Advertising Division Recommends that Maker of Flashlights Discontinue Comparative Advertising and Made in USA Claims
Takeaways:
- Support any comparative claims and clearly disclose the basis of the comparison.
- Be specific about claims regarding products or components made in the United States.
Last month, the National Advertising Division (NAD), a self-regulatory body, recommended that Telebrands, Corp., discontinue certain advertising claims for the company’s Atomic Beam flashlight, including claims comparing its brightness
National Advertising Division Recommends that Maker of Reusable Storage Bags Discontinue Unsupported Comparative Advertising Claims
Takeaways:
- Regulators continue to emphasize that relative comparisons in advertising must be supported by fact-based evidence.
- Each claim in an advertisement remains subject to review by the National Advertising Division.
Repost: 2018 ABA Antitrust Law Spring Meeting: Consumer Protection Takeaways
The annual ABA Antitrust Law Spring Meeting held in Washington, D.C., last month included sessions on consumer protection. Key takeaways include the following:
- The FTC Act remains broad in scope, claims about products treating serious diseases must be supported by clinical testing, and companies promoting their products as “Made in the USA” must meet the