The National Advertising Division (NAD) has recommended that J-B Weld Company stop claiming its epoxy and adhesive products are “Made in USA” and “have always been made in the USA.” J-B Weld said it will appeal to the National Advertising Review Board (NARB), Manatt reported on February 7, 2019.
The challenge
Competitor Illinois Tool Works, maker of Permatex products, argued that tubes, caps and applicators in J-B Weld’s products came from other countries. It pointed to a Chinese company’s markings on J-B Weld’s epoxy syringes.
J-B Weld argued that those pieces are packaging, not the product, so its claims did not cover them. It also submitted confidential data showing the parts made up a small share of the average selling price.
NAD’s findings
- NAD noted the FTC’s guidance is silent on whether such components are packaging or part of the product.
- It found the caps and tubes “are integral to the use of the product,” for example keeping glue from drying out or allowing precise application.
- Consumers seeing the claim are likely to believe “the glue, tube, cap and any additional components” have little to no foreign content.
- Price data was “irrelevant.” The FTC looks at a company’s manufacturing costs, which J-B Weld did not provide.
J-B Weld said it would show that its products contain “no—or almost negligible—foreign content.” The FTC later weighed in on the packaging question in a March 2020 closing letter.
FAQ
Who challenged J-B Weld?
Illinois Tool Works, maker of Permatex products.
What did NAD decide?
That the imported caps, tubes and syringes are part of the product, and that J-B Weld had not supported its Made in USA claims.
What did J-B Weld do next?
It said it would appeal to the National Advertising Review Board.
Source & credit
Source: Manatt, Phelps & Phillips: “Product or Packaging? Advertiser to Appeal NAD Decision on Origin Claims”, February 7, 2019.