Consumer Watch Dog Group Brings Allegation of Walmart's Deceptive Made in USA Claims to the FTC, Again

Under the FTC’s Made in USA standard, only products that are “all or virtually all” made in the United States can be marketed as “made” in the USA or “made” in America. These are what the FTC calls unqualified U.S.-origin claims. The FTC has said in staff closing letters to made in the USA marketers that terms like “manufactured” and “built” also likely suggest to consumers that the product advertised is “all or virtually all” made in the United States, meaning it contains no – or negligible – foreign content. When that is not the case and the product advertised contains an amount of foreign content that is more than negligible, under the legal standard marketers can say things like “assembled” in the USA, though the FTC says to avoid such qualified claims unless the product still has a significant amount of U.S. content or U.S. processing. When making qualified claims like “Made in the USA with domestic and imported parts,” the FTC requires that the qualifying language – in this example, “with domestic and imported parts” – be clear and conspicuous. That is to say, the qualifying language must be easy for consumers to notice and, once they’ve noticed it, understand what it means. In the end, the FTC says: “A qualified Made in USA claim, like an unqualified claim, must be truthful and substantiated.”

In their complaint, TruthInAdvertising.org, alleges that "Whereas the FTC distinguishes between unqualified and qualified U.S.-origin claims, Walmart’s definition of 'made' in the USA mashes them together."

Complying with the FTC rules can be complex and some manufacturers run afoul of the rules through ignorance, not the intent to deceive. I am pleased to announce that my company, Agathon Associates, offers a "Made in U.S.A. Certification" service. Manufacturers desiring to make a Made in U.S.A. claim can have me evaluate their manufacturing process and certify that under the FTC rules they can honestly say "Proudly Made in the U.S.A."