California Statute Regarding Made in USA Claims Reportedly Used Against Apparel Industry

According to a report by the legal and consulting firm Sandler and Travis, "Apparel companies are beginning to receive letters that raise the specter of significant potential liability for damages under California’s 'Made in USA' false advertising law." The California law is more stringent than U.S. Federal Trade Commission ("FTC") rules, with the result that an apparel article properly labeled in compliance with the FTC Wool Rules or Textile Rules, might be out of compliance with the California statute that requires that "the merchandise or any article, unit or part thereof has been entirely or substantially made, manufactured or produced outside of the United States."