Tea bag and loose tea leaves beside a steaming cup

A federal jury in California awarded a class of tea buyers $2.36 million in a case over Bigelow Tea’s “Manufactured in the USA” label, Kelley Drye’s Ad Law Access blog reported on April 10, 2025.

The case

  • Plaintiffs sued in 2020 in Banks v. R.C. Bigelow, Inc., in the Central District of California, saying the label suggested the tea was made in the USA when the leaves are grown and processed abroad.
  • Bigelow argued the claim referred only to the tea bags, which are made in the USA.
  • Before trial, the court granted partial summary judgment to the plaintiffs, writing that tea leaves “are the very essence of the tea bag” and finding the claim literally false.
  • Plaintiffs showed internal emails in which executives debated the label in light of the FTC’s all or virtually all standard.
  • A plaintiffs’ expert said the class overpaid by 11.3%, or $3.26 million. The jury awarded $2.36 million after about three hours.

Later commentary in The National Law Review said the verdict could increase challenges to Made in USA labels.

Why it matters for Made in USA

The ruling says a USA claim is judged by the product’s essential part, not its packaging. Companies that use words like “manufactured” or “made” should check the main ingredient’s origin, and be careful what they write internally.

FAQ

How much did the jury award?

$2.36 million to a class of California tea buyers.

Why was the label found false?

The court said the tea leaves, which are grown and processed abroad, are the essence of the product.

What standard did the court use?

It relied on the FTC view that an unqualified USA claim means all or virtually all made in the USA.

Source & credit

Source: Kelley Drye & Warren, Ad Law Access, April 10, 2025: “Jury Awards Tea Drinkers $2.36 Million in Made in USA Dispute”. Additional analysis: The National Law Review.