Truth in Advertising (TINA.org) filed a complaint with the FTC on September 20, 2021. It says New Balance has marketed some sneakers as “Made in USA” for more than a decade even though a substantial part of each shoe, including the sole, is imported.
TINA.org asked the FTC to investigate and take enforcement action under the Made in USA Labeling Rule and Section 5 of the FTC Act.
Key details
- TINA.org says New Balance labels at least a dozen models as USA-made on shoes, boxes, tissue paper, tags, web pages and social posts.
- New Balance says the shoes have “a domestic value of 70% or more.” TINA.org says this falls short of the FTC’s “all or virtually all” standard.
- TINA.org says the 70% disclosure appears in places few shoppers see, such as box bottoms and the undersides of tags.
- The FTC can seek penalties of $43,792 per violation under the rule. The rule grew out of a TINA.org petition.
“For more than a decade, the multibillion-dollar company has mislead consumers by making unqualified claims that certain of its sneakers are Made in the USA when a substantial portion of these shoes, including the soles, are imported.”
TINA.org complaint to the FTC
Related: a consumer class action followed in December 2021.
FAQ
What did TINA.org ask the FTC to do?
Open an investigation into New Balance’s Made in USA claims and take enforcement action.
What standard does New Balance use?
It says the shoes have a domestic value of 70% or more.
What does the FTC require?
An unqualified Made in USA claim requires the product to be all or virtually all made in the USA.
Source & credit
Source: Truth in Advertising, September 20, 2021: “TINA.org Files FTC Complaint Against New Balance for Deceptive Made in USA Marketing” and the complaint letter.
Also: The Fashion Law, September 20, 2021: “New Balance is Running Afoul of Made in U.S. Labeling Law”.