The FTC has closed its investigation of ROKA Sports Inc., the Austin, Texas sportswear and eyewear brand, after the company changed USA-origin claims on its sunglasses, The Fashion Law reported on June 4, 2024. The FTC’s closing letter to co-founder and CEO Rob Canales was dated May 17.
What concerned the FTC
ROKA had advertised its eyewear as “Handbuilt in USA” and “Handbuilt in Austin, TX.” The agency said certain products used imported frames, lenses or other significant parts, so the claims could overstate how much of the product was made in the USA.
What ROKA did
- Removed USA-origin claims from its marketing.
- Stickered over old claims on packaging and updated third-party sellers.
- Reviewed origin markings across products and trained staff on compliance.
- Switched to “Assembled in USA” in some ads.
The rules the letter spells out
Under the Made in USA Labeling Rule, an unqualified claim means a product is “all or virtually all” made in the USA. “Assembled in USA” is allowed when the product was last substantially transformed in the USA and its principal assembly here is substantial. Qualified claims such as “Made in USA of Imported Parts” or “60% U.S. Content” are also options when they are truthful.
FAQ
Was ROKA fined?
No. The FTC closed its investigation without action after ROKA’s fixes.
What claim was the problem?
“Handbuilt in USA” and “Handbuilt in Austin, TX” on eyewear with imported frames, lenses or other key parts.
When can a company say Assembled in USA?
When the product was last substantially transformed in the USA and the USA assembly is substantial.
Source & credit
Source: The Fashion Law, June 4, 2024: “FTC Closes ROKA Probe, Sheds Light on ‘Made In USA’ Rules”.