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Remedial Actions Avoid FTC Penalties in “Made in USA” Labeling Case


(Sandler, Travis & Rosenberg Trade Report)

The Federal Trade Commission recently determined not to further pursue a “made in USA” labeling case against a major U.S. retailer after it took a number of remedial steps. The FTC opened this investigation after consumers reported that items prominently marked “made in USA” on their exterior packaging were themselves marked “made in China.”

While the FTC notes that its decision does not mean there was no labeling violation and that it could take further action if necessary, the agency’s letter to the retailer indicates that it looks favorably on the company’s response.

First, the company confirmed and corrected the country of origin information for the identified items as well as several other items the company self-identified. Specifically, the company removed affected items from sales floors, hard-locked them at the point-of-sale system so they could no longer be sold to consumers, and began work to remediate packaging. Click here to read more.