Federal Trade Commission staff closed an inquiry into “Made in USA” claims on Walmart’s website in a letter dated Oct. 20, 2015, after the retailer removed the logos from all of its online product listings. The letter said staff would not pursue the investigation further, but that the decision “should not be construed as a determination that there was no violation.”
What Walmart changed
According to the FTC letter and news reports on it, Walmart:
- removed “Made in USA” logos from all product listings on its website;
- removed country-of-origin information from product specifications, unless required by law, along with U.S.-origin claims in product titles and descriptions;
- began screening advertising copy submitted by suppliers for U.S.-origin claims; and
- redesigned the “Made in USA” logos on some private-brand products so they disclose how much of the product was made in the USA.
How the inquiry started
The watchdog group Truth in Advertising said it found about 100 mislabeled products on Walmart.com in June 2015, raised them with the company, then found about 100 more in July and took the information to the FTC. One example cited by the group was a Walmart store-brand plastic sandwich bag listed online as “Made in USA” while its packaging said it was made in Thailand.
“Based on your actions and other factors, the staff has decided not to pursue this investigation any further,” FTC staff attorney Julia Solomon Ensor wrote. Walmart spokesman Kory Lundberg said the company was pleased with the decision and was “committed to reviewing and strengthening our processes.”
Background
The claims arose as Walmart worked toward a 2013 pledge to buy an additional $250 billion in USA-made goods over 10 years.
Source & credit
Sources: Federal Trade Commission: closing letter to Walmart Stores, Inc., Oct. 20, 2015; Reuters via NBC News: “FTC Closes Probe of Wal-Mart Over Misleading ‘Made in USA’ Labels”, Oct. 20, 2015; Business Insider: “Walmart suddenly removed ‘Made in USA’ labels from its website”, Oct. 21, 2015.