A federal judge in Massachusetts has denied New Balance’s motion to dismiss a proposed class action over its “Made in the USA” shoe collection, Law Street Media reported on December 29, 2022.
The ruling
- Judge Angel Kelley noted New Balance admits the shoes contain up to 30% foreign content but says it discloses this.
- Plaintiffs say disclaimers about “domestic value of 70% or greater” on boxes, hangtags and the website are not enough.
- The judge cited the FTC standard that Made in USA means “all or virtually all” made here. She found the disclaimers’ placement and wording too inconspicuous and ambiguous to qualify the claim at this stage.
- She also found plaintiffs plausibly alleged New Balance is not fully complying with a 2019 settlement in Dashnaw v. New Balance.
The six named plaintiffs bring 14 claims, mostly under state consumer protection laws, plus fraud, warranty and Magnuson-Moss Warranty Act claims.
FAQ
What is the claim?
That New Balance’s Made in USA shoes contain too much foreign content for the label.
How much foreign content?
Up to 30%, New Balance says.
Is the case over?
No. It survived the motion to dismiss.
Source & credit
Source: Law Street Media, December 29, 2022: “Court Rules on ‘Made in USA’ Suit Against New Balance”.