---
title: Latest Made in USA Settlement Offers Lessons for Fashion Companies
date: 2023-06-29T06:00:00-04:00
author: Import Bot
canonical_url: "https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/latest-made-in-usa-settlement-offers-lessons-for-fashion-companies"
section: Blog Posts
---
# Latest Made in USA Settlement Offers Lessons for Fashion Companies

  June 29, 2023

 

 

 

  ![](https://d3iuizmsm2hayf.cloudfront.net/content/uploads/Hero-Objects/made_in_USA.webp?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=1880&q=80&w=1880&s=d79febe50105d8c89b938235a635da90)  

 

 

 

This week, just a few days before the Fourth of July holiday, the FTC announced a settlement with three fashion companies (that operated together as a common enterprise) over patriotic claims that the companies made about various accessories, such as belts, bags, wallets, and shoes.

Here are a few highlights from FTC’s complaint:

- The companies made *unqualified* ​“Made in USA” claims about many of their products. Despite the broad claims, the FTC alleged that many of products were wholly imported or contained significant imported content.
- The companies made *qualified* claims that some belts were ​“Made in USA from Global Materials” because they took straps that were made in Taiwan and attached buckles in the US. The FTC alleged the claims were misleading because ​“attaching a buckle to a belt strap is a minimal assembly operation that does not change the name, character, or use of an imported belt strap.”
- By providing materials with those claims to trade partners, the companies provided the ​“means and instrumentalities” for those partners to commit deceptive acts or practices.

Here are a few highlights from the settlement:

- The companies are prohibited from making *unqualified* US-origin claims for any product, unless they can show that the product’s final assembly or processing – and all significant processing – takes place in the US and that all or virtually all components are made and sourced here.
- If companies make *qualified* claims, they must include a ​“clear and conspicuous” disclosure – as that term is defined in detail in the settlement – about the extent to which the product contains foreign parts, components, or processing.
- If the companies make claims about the assembly of a product, they must ensure that the product is last substantially transformed in the US, its principal assembly takes place here, and US assembly operations are substantial.
- The companies can’t provide materials to third parties that would enable them to make any prohibited claims.

In addition, the companies have to pay a monetary judgment of $191,481 and inform certain customers about the FTC action. This case demonstrates that the FTC continues to take ​“Made in USA” claims seriously. If you make claims about domestic origin, be sure to take a close look at the FTC’s [Made in USA Labeling Rule](https://www.federalregister.gov/documents/2021/07/14/2021-14610/made-in-usa-labeling-rule) and assess how well you’re complying. In the meantime, enjoy the Fourth of July holiday.

 

 

 - Share this entry 
    - 
    - 
    - 
    -
- [  View entry pdf ](https://s3.amazonaws.com/cdn.kelleydrye.com/content/uploads/pdf-snapshots/latest-made-in-usa-settlement-offers-lessons-for-fashion-companies-20230914223215.pdf)
 
 

### Search Blog

  

### Subscribe

  

### Explore Topics

- [Fashion and Retail](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/retail)
- [Federal Trade Commission (FTC)](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/federal-trade-commission-ftc)
- [Made in USA](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/made-in-usa)
 
 

### Related Services

- [Advertising and Marketing](https://www.kelleydrye.com/practices/advertising-and-marketing)