Background

A U.S. company and its owner will pay $753,000 to settle charges that they made false, misleading, or unsupported advertising claims that their imported mattresses were made from 100 percent U.S.-made materials. According to the FTC, the mattresses are finished overseas and, in some cases, are wholly imported or use significant imported materials. Several FTC commissioners noted that the company at issue is the parent of another company that is “a repeat offender already under order for false made in the USA claims.”

The FTC’s “Made in USA” rule, which took effect in August 2021, prohibits marketers from labeling products as “Made in USA” unless (1) the final assembly or processing, and all significant processing that goes into the products, occur in the U.S. and (2) all or virtually all ingredients or components of the products are made and sourced in the U.S. The rule also requires all “Made in USA” labels appearing in mail order catalogs to be truthful and non-misleading. Violators may be subject to civil penalties like the one imposed in this case.

For more information on “Made in USA” labeling requirements, please contact attorney Elise Shibles at (415) 490-1403 or via email.

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