Thursday, July 16, 2020
FTC Approves Final Order Settling Charges that Williams-Sonoma, Inc. Made Overly Broad and Misleading ‘Made in USA’ Claims about Houseware and Furniture Products
Under the terms of the final order, Williams-Sonoma is required to pay $1 million to the FTC. The company also is prohibited from making unqualified U.S.-origin claims for any product, unless it can show that the product’s final assembly or processing—and all significant processing—takes place in the United States, and that all or virtually all components of the product are made and sourced in the United States. Under the order, any qualified Made in USA claims must include a clear and conspicuous disclosure about the extent to which the product contains foreign parts, components, and/or processing. To claim that a product is assembled in the United States, Williams-Sonoma must ensure that it is last substantially transformed in the United States, its principal assembly takes place in the United States, and its United States assembly operations are substantial.