Sharpened yellow pencils and wood shavings on a desk

BBB National Programs’ National Advertising Division (NAD) referred “Made in USA” claims by Larose Industries LLC, which does business as RoseArt and Cra-Z-Art, to the Federal Trade Commission, the group announced on January 10, 2025.

The case

  • Competitor Cedar Alliance Ltd. brought a fast-track SWIFT challenge to Larose’s pencil advertising.
  • Cedar Alliance said the pencils use phrases like “Proudly Made in USA” and American imagery but use components from China and involve foreign manufacturing and assembly.
  • Larose did not respond to NAD’s repeated messages, so NAD sent the matter to the FTC for possible enforcement and alerted advertising platforms.

Why it matters for Made in USA

Competitors often police origin claims through NAD. A company that ignores NAD gets referred to the FTC. Two months later, Cra-Z-Art announced it was expanding its USA plants; see our March 2025 report.

FAQ

Who challenged the claims?

Cedar Alliance, a competing pencil maker.

Why was it referred to the FTC?

Larose Industries did not respond to NAD.

What claim is at issue?

“Proudly Made in USA” on pencils allegedly made with Chinese components.