The Federal Trade Commission closed two more Made in USA investigations in May 2019, in letters dated May 8 and May 14. One involved brewing equipment and the other countertop slabs.
Norland International (American Beer Equipment)
The FTC looked at whether marketing overstated how much of Norland International’s products and systems sold under the American Beer Equipment name are made in the USA. In its May 8, 2019 letter, the agency said the company removed USA-origin claims from all marketing materials.
If the company makes such claims again, the FTC said, its materials “should clearly differentiate U.S.-origin products from imported products” and avoid “overly broad U.S.-origin claims” on materials covering several products.
LG Hausys America
The FTC said that in some cases essential raw materials in LG Hausys’s quartz and solid surface slabs were imported, and in others the slabs were imported as finished products. According to the May 14, 2019 letter, the company’s remedial plan included:
- Removing USA-origin claims or adding qualified claims to marketing materials.
- Sending more than 5,000 update kits to customers.
- Working to keep dealer claims accurate, including five rounds of email blasts, tracking email open and read rates, field visits, and ending ties with dealers that did not comply.
Both letters closed the matters without further action. Closing letters drew criticism that year, as seen in the FTC’s 3-2 split over no-money orders in April.
FAQ
What did the FTC question about LG Hausys?
Some slabs used imported essential raw materials, and others were imported as finished products.
What did Norland do?
It removed USA-origin claims from all of its marketing materials.
Were there penalties?
No. Both investigations were closed without further action.
Source & credit
Source: FTC closing letters: Norland International, May 8, 2019 and LG Hausys America, May 14, 2019.
Also: Frankfurt Kurnit Klein & Selz via Mondaq: “Two More From The FTC On ‘Made In USA’”.