Federal Trade Commission staff sent a closing letter to adhesive maker J-B Weld on March 19, 2020. The agency declined to take action over the company’s Made in USA claims after J-B Weld made changes to its marketing.
The matter reached the FTC on a referral from the National Advertising Review Board (NARB), the industry’s self-regulatory appeals panel. J-B Weld had refused to accept all of NARB’s recommendations on its USA-origin claims.
How the case started
A competitor challenged J-B Weld’s claims before the National Advertising Division (NAD). The dispute centered on whether “Made in the USA” claims were proper for glue and adhesive products when the tubes, caps, syringes and applicators were made abroad.
- NAD found that point-of-sale paper packaging and “bubble” material that consumers typically throw away was not relevant to the claim.
- NAD said other packaging items did matter, because they were central to how the product is dispensed.
- NARB agreed that information on the share of total manufacturing cost from foreign content was needed to support the claim. J-B Weld declined, saying the cost data was highly confidential, and NARB referred the matter to the FTC.
What the FTC said
FTC staff noted that J-B Weld makes its epoxy and silicone adhesives in the USA, but also sells cyanoacrylate and other adhesives that are wholly imported or contain significant imported content.
The agency closed the matter after the company:
- updated packaging for several product lines;
- removed USA-origin “line” claims from its website and social media; and
- required third-party sellers to update information about where its products are made.
“While the glue contained in that packaging was ‘all or virtually all’ made in the United States, the packaging itself, which had no independent value to consumers and was typically discarded upon depletion, was not.”
FTC staff closing letter, as quoted by The National Law Review
Staff said that without consumer perception evidence showing otherwise, reasonable consumers were unlikely to read the unqualified claims as covering that incidental, discarded packaging.
FAQ
When did the FTC send the letter?
March 19, 2020.
Why did the FTC close the matter?
J-B Weld updated packaging, removed product line origin claims online and had third-party sellers update origin information.
What did the FTC say about packaging?
Discarded packaging with no independent value was unlikely to be seen as covered by the USA claim.
Source & credit
Source: The National Law Review, April 7, 2020: “FTC Addresses Packaging in ‘Made in USA’ Closing Letter Following NARB Referral”.