September 2, 2015
Under the California labeling system enacted in 1961, a product could not be marked as “Made in America” unless 100 percent of its manufactured content was domestically made. This changed when California Governor Jerry Brown signed a bill that enables products to be marketed as “Made in America” even if they were not constructed entirely within the U.S. The modification ties California closer to match with the Federal Trade Commission labeling rules, which require “all or virtually all” of a product to be manufactured domestically to get the label.
In the Law360 article, Partner Lee Brenner comments, “There will be a chilling effect on the wave of consumer protection suit.”
“This bill will deter consumer class action lawsuits that have been on the rise in recent years in California, which alleged that manufacturers and sellers improperly labeled a product as made in America,” Mr. Brenner continued.
State Senator Jerry Hill, SB 633’s primary backer in the California Senate, publicizes the measure as a modernization of labeling rules that would help California adapt to an increasingly globalized supply chain.