Williams-Sonoma Inc. agreed to pay $1 million to settle Federal Trade Commission charges that it falsely claimed some of its products were all or virtually all made in the USA. The FTC announced the proposed settlement on March 30, 2020.
The charges
According to the FTC complaint, the company made false, misleading or unsubstantiated USA-origin claims for:
- Goldtouch Bakeware;
- Rejuvenation-branded products; and
- Pottery Barn Teen and Pottery Barn Kids upholstered furniture.
The FTC said many of these products were wholly imported or contained significant imported materials or components.
A second case
This was the second time the FTC looked at the company’s origin claims. In 2018 it received reports that Pottery Barn Teen organic mattress pads were marketed as “Crafted in America from local and imported materials.” The complaint said they were made in China.
The company corrected that claim and agreed to review how it checks country of origin, and the FTC closed the investigation in June 2018. The agency said the misleading claims continued afterward.
Furniture Today linked the settlement to a May 2019 complaint by the nonprofit Truth in Advertising (TINA.org). TINA said it had found more than 800 examples of USA-made claims on the company’s sites for products that were imported or made with imported materials.
The order
Under the proposed order, Williams-Sonoma may not make unqualified USA-origin claims unless:
- final assembly or processing and all significant processing happen in the USA; and
- all or virtually all components are made and sourced in the USA.
Qualified claims must clearly disclose foreign parts, components or processing. The FTC approved the final order in July 2020.
“Many of us want to buy products that are made in the USA, and we trust companies like Williams-Sonoma to tell us the truth. When a company falls short, we will hold it accountable.”
Andrew Smith, Director, FTC Bureau of Consumer Protection
FAQ
How much did Williams-Sonoma agree to pay?
$1 million.
Which products were involved?
Goldtouch Bakeware, Rejuvenation products, and Pottery Barn Teen and Pottery Barn Kids upholstered furniture.
What does the order require?
Unqualified USA claims only when all or virtually all of a product is made in the USA, and clear disclosure for qualified claims.
Source & credit
Source: Furniture Today, March 31, 2020: “Williams-Sonoma agrees to curb made-in-U.S. claims”.
Also: Home Textiles Today, March 31, 2020: “Williams-Sonoma Inc. fined for Made in the USA claims”.