The Federal Trade Commission announced a proposed settlement with iSpring Water Systems, LLC on Feb. 1, 2017, over claims that its water filtration systems and parts were built in the USA.
What the FTC alleged
iSpring is based in Alpharetta, Georgia, and also does business as 123filter.com. It sold water filtration systems and parts on that site and through third-party websites.
The FTC’s complaint said the company labeled and advertised its products as “Built in USA,” “Built in USA Legendary brand of water filter” and “Proudly Built in the USA.” According to the FTC, the products were either wholly imported or made with a significant amount of foreign inputs.
What the order requires
The order bars iSpring from making unqualified USA-origin claims unless three conditions are met:
- final assembly or processing happens in the USA
- all significant processing happens in the USA
- all or virtually all ingredients or components are made and sourced in the USA
Qualified claims must clearly disclose, right next to the claim, how much foreign content or processing a product includes. The order covers words such as “made,” “manufactured,” “built” and “produced.” It also bars any origin claim the company cannot back up.
The FTC took public comments until March 3, 2017. The case is FTC File No. 172 3033.
In 2019, iSpring agreed to pay a civil penalty for violating this order. See our coverage of the $110,000 penalty.
FAQ
What claims did iSpring make?
“Built in USA,” “Built in USA Legendary brand of water filter” and “Proudly Built in the USA.”
Does “built” count as a Made in USA claim?
Yes. The order covers made, manufactured, built and produced claims.
What happened later?
In 2019 iSpring paid a $110,000 civil penalty for violating the order.
Source & credit
Source: FTC: iSpring Agreement Containing Consent Order, File No. 172 3033, Feb. 1, 2017.
Also: Satellite PR News: “FTC says filtration system’s Made in USA claims didn’t hold water”.