By way of example, according to the American Apparel & Footwear Association, 97 percent of apparel and 98 percent of footwear sold in the United States are manufactured overseas. However, consumer demand for American-made clothing and shoes has grown in recent years.
Consumer demand for American-made products has grown in recent years.
Additionally, the demand for U.S. made high-end goods such, as guitars, basses and boutique music instrument amplifiers has increased as well. For businesses that do make their goods in this country, being able to use a “Made in USA” label can be a very successful marketing tool. However, it is imperative to play by the rules.
What does “Made in USA” mean?
Under Federal Trade Commission (FTC) guidance, “Made in USA” means that “all or virtually all” the product has been made in America. Moreover, all significant parts, processing, and labor that go into the product must be of U.S. origin. Products may not contain any — or only negligible — foreign content.
In applying the “all or virtually all” standard, the FTC will analyze a number of different factors…
In applying the “all or virtually all” standard, the FTC will analyze a number of different factors, including the proportion of the product’s total manufacturing costs attributable to U.S. parts and processing, how far removed any foreign content is from the finished product, and the importance of the foreign content or processing to the overall function of the product.
What if you can’t meet the “Made in USA” standard?
For businesses that can’t satisfy the standard, it is possible to include a qualified “Made in USA” claim, which describes the extent, amount or type of a product’s domestic content or processing and indicates that the product isn’t entirely of domestic origin. Examples include: “70% U.S. content,” or “Made in USA of U.S. and imported parts or assembled in the USA using domestic and foreign parts.”
Be mindful when you claim “Made in USA”
In any event, it is imperative for businesses to thoroughly analyze the percentage of domestic content in a particular product before making a “Made in USA” claim. Under the FTC Act, the FTC is authorized to bring law enforcement actions against false or misleading claims, including those that misstate a product is of U.S. origin.In 2015, the FTC staff sent 28 “closing letters” to businesses that were investigated by the agency and subsequently agreed to alter their labeling and advertising to comply with federal law. To date, the FTC has sent 18 letters in 2016, which suggests the agency’s radar screen is quite active.
If you are unsure whether you can claim “Made in USA” or if you would like to discuss the matter further, contact me, Ron Bienstock, at 201-806-3364.
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
