Tuesday, July 22, 2014

Made in USA Brand, LLC Agrees to Drop Deceptive Certification Claims

A company that provides a “Made in USA” certification seal to marketers has agreed to settle Federal Trade Commission charges that it deceived consumers by allowing companies to use the seal without either independently verifying that those companies’ products were made in the United States, or disclosing that the companies had certified themselves.

The company, Made in USA Brand, LLC, is required under the proposed settlement to stop its deceptive claims.

The Columbus, Ohio-based Made in the USA Brand, LLC charged $250 to $2,000 for a one-year license to use the certification mark, according to the FTC. But the company did not independently evaluate the products before certifying them, and had no procedures to determine whether marketers complied with the FTC’s Made in USA standard, according to the complaint.

Read more HERE.

Federal Trade Commission requirement for labeling of textile and apparel products are complex and cover such areas as:

  • country of origin,

  • fiber content,

  • care labeling, and

  • identification manufacturer, importer, or other dealer.

The penalties for mislabeling can be high, in some cases as high as $16,000 per offense (that's per garment!).

David Trumbull, Principal, Agathon Associates, has 20-years experience working with the FTC. Agathon Associates can assist you with LABEL ADVISOR, which offers "Smart guidance for U.S. label compliance: SO SMART, SEW RIGHT." For more information call 202-657-6008 and talk to David.

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