Federal Trade Commission staff closed an investigation of the parent company of Detroit watch brand Shinola on June 16, 2016, after the company agreed to change marketing that overstated how much of its products were made in the USA.
What the FTC found
The closing letter went to Bedrock Manufacturing Company, LLC, which did business as Shinola/Detroit and Filson, a Seattle outfitter. FTC staff said certain marketing overstated the extent to which Shinola and Filson products, including watches, some leather goods and bicycles, were “made” or “built” in the USA.
Unqualified “Made in USA” or “Built in USA” claims likely tell consumers that products are all or virtually all made in the USA, the letter said. Examples of imported content cited by staff:
- 100% of the cost of materials for certain watches came from imported materials
- more than 70% of the materials cost of certain belts came from imports such as decorative buckles
- the steel for certain bicycle forks was sourced overseas
What Shinola agreed to do
Bedrock adopted a plan that included corrective hangtags and information cards, redesigned watch casebacks, updated embossing on leather goods, revised online, print and retailer advertising, new employee training, and moving away from its “Where American is Made” slogan.
The Detroit Free Press reported that Shinola would keep “Built in Detroit” on its watches but add “Swiss and Imported Parts” beneath it.
Staff decided not to recommend enforcement action. But the letter said materials presented during the investigation raised concerns that Bedrock might make deceptive USA-origin claims in the future, so the FTC would “continue to monitor the Company’s advertising closely.”
Shinola’s response
Founder Tom Kartsotis said the company had always tried to be transparent but acknowledged “some flaws in our communication.” He criticized what he called “the almost unattainable ‘Made In USA’ standards created by the government.”
FAQ
Was Shinola fined?
No. FTC staff closed the investigation without recommending enforcement after the company adopted a corrective plan.
Can Shinola still say “Built in Detroit”?
The company said it would keep “Built in Detroit” on watches and add “Swiss and Imported Parts.”
Which other brand was covered?
Filson, the Seattle outfitter that was also owned by Bedrock Manufacturing.
Source & credit
Source: FTC: Closing letter to Bedrock Manufacturing Company, LLC, June 16, 2016.
Also: Detroit Free Press: “FTC tells Shinola: Stop saying ‘Where American is made’”, June 17, 2016; The Made in America Movement: “Shinola is not Made in The USA According to FTC”.