Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Outdoor accessories marketers drop made-in-the-USA claims, (Oct 21, 2013)
Organizations Mentioned:E.K. Ekcessories, Inc.
By Jody Coultas, J.D.
The FTC has settled charges that a marketer of various outdoor accessories falsely claimed its products were “Made in the U.S.A,” or “Truly Made in the USA,” even though the products contained substantial foreign content (In the Matter of E.K. Ekcessories, Inc., FTC File No. 132 3156).
E.K. Ekcessories, Inc. sells merchandise directly to consumers on its website, ekusa.com, and through online sellers such as Amazon and REI. The company’s website stated that its accessories were made in Logan, Utah. However, E.K. Ekcessories imported many of its products and components. The FTC alleged that the company distributed deceptive promotional materials for its products to third-party retailers. These statements allegedly violated the FTC Act.
The FTC’s 1997 U.S. Origin Claims Enforcement Policy Statement states that for a product to be advertised or labeled as “Made in the U.S.A,” the product must be “all or virtually all” made in the United States. Thus, all significant parts and processing must be of U.S. origin, and the product should contain no foreign content.
The proposed consent order would prohibit the company from deceiving consumers about the degree to which its products are made in the United States. E.K. Ekcessories is prohibited from claiming that any product is made in the United States unless that product is all or virtually all made in the United States and from providing deceptive promotional material to third-party retailers. The company also would be required to contact all distributors who bought or received products between January 1, 2010 and May 1, 2013, and provide them with a notice and a copy of the order.
Companies: E.K. Ekcessories, Inc.
News: Advertising ConsumerProtection FederalTradeCommissionNews