Antitrust Law Daily Wrap Up, ADVERTISING NEWS: FTC closes investigation into Wal-Mart country-of-origin claims, (Oct 21, 2015)
Organizations Mentioned:Wal-Mart Stores, Inc.
By Greg Hammond, J.D.
The FTC has decided not to pursue its investigation into Wal-Mart Stores, Inc., concerning outdated country-of-origin information on the retail corporation’s website and the “clarity and conspicuousness” of disclosures on “Made in USA” logos used in the company’s Investing in American Jobs Program.
In the FTC’s letter to Wal-Mart, the Commission identified the steps the company took to prevent consumer deception, including: (1) removing “Made in USA” logos from product listings; (2) removing country-of-origin information on product specifications, except for information required by law; (3) removing U.S.-origin claims appearing on product descriptions or titles; (4) implementing a procedure to flag and remove new U.S.-origin claims made in ad copy; and (5) establishing new “Made in USA” logos for products relating to the Investing in American Jobs Program, containing larger disclosures on the percentage of U.S. content contained in the product and that the origin claim is “self-certified” by a supplying factory.
Commission staff concluded that, based on Wal-Mart’s actions and other factors, the Commission will not pursue its investigation. The FTC noted, however, that its action not to pursue the investigation does not mean there was no violation of Section 5 of the FTC Act, and it reserved its right to take further action in the future.
Companies: Wal-Mart Stores, Inc.
News: Advertising ConsumerProtection FederalTradeCommissionNews