Water filter cartridges and folded linens on a shelf

The Federal Trade Commission closed two Made in USA investigations in January 2020, according to a February 3, 2020, recap by Jeff Greenbaum. In both cases the companies agreed to stop making unqualified USA origin claims.

Bulkfilter (January 3)

  • The FTC had looked at whether Ensurent.com, doing business as Bulkfilter, overstated how much of its product line is made in the USA.
  • The company sells a mix of USA-origin products, imported products and bundles that combine both.
  • Bulkfilter said it had applied a packaging template with unqualified “Made in USA” claims to all of its products by mistake.
  • Its remedial plan included removing the improper claims, updating product images on its website and eBay listings, and gathering more support for its USA origin claims.

Urquid Linen (January 28)

  • The FTC had looked at whether Urquid, Inc., doing business as Urquid Linen, complied with the Textile Products Identification Act.
  • The agency said some tablecloths, napkins and draperies left out required country-of-origin information or did not disclose that they were made from imported fabric.
  • The company agreed to remove unqualified USA claims and update labels and packaging. It also agreed to notify consumers, retailers and third parties, post that notice online and train staff on the Textile Act.

In a separate recap, Greenbaum said recent closing letters show false “made in USA” claims remain a top FTC priority. He said marketers must meet the FTC’s “all or virtually all” standard and should not confuse it with the lower Buy American Act standard used in government purchasing.

FAQ

What is an FTC closing letter?

A letter ending an investigation without enforcement action, often after the company agrees to fix its claims.

What did Bulkfilter agree to do?

Remove improper Made in USA claims, update its website and eBay images, and gather more substantiation.

Which law applied to Urquid Linen?

The Textile Products Identification Act and its rules.

Source & credit

Source: Lexology, February 3, 2020: “FTC’s January Closing Letters — A Quick Recap”.

Also: Mondaq, February 3, 2020: “FTC Continues To Pursue Marketers Over ‘Made In USA’ Claims”.