$220K fine for misleading descriptions of country of origin as “Made in USA”

2016-11-01 23:13
Earlier this year, FTC appealed against chemical product manufacturing company, Chemence, Inc.,  alleging that the “Made in USA” label attached to their products have mislead consumers to perceive the country of origin as indicated. On Octorber 19th, 2016, the agreement reached Chemence, Inc. to pay FTC $220K.

FTC argued that Chemence’s disputed product, an adhesive which contained about 55% of foreign chemical compositions, had led the consumers and third-party sellers to misconceive it as the product made in USA.

The FTC standard for products labeled and marketed as “Made in USA” requires that all or virtually all of products be made in the US, examining the foreign content of a product as a whole. According to the FTC’s guidelines, all or virtually all means that “all significant parts and processing that go into the product must be of US origin,” or “the product should contain no — or negligible — foreign content.”
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