A New Jersey federal judge ruled on August 25, 2020, that Albion Engineering Company is liable for false advertising and unfair competition. The court found that Albion told customers its caulking and dispensing guns were made in the USA when many were made in Taiwan.
Competitor Newborn Bros. Co. brought the case in 2012 under the Lanham Act and New Jersey unfair competition law. Newborn imports its own dispensing guns from China and Taiwan.
What the court found
- Albion made all of its guns in Philadelphia until 2000. It then began working with a Taiwanese company and expanded production in Taiwan in the 2010s.
- Albion kept telling customers that “All Albion products are Made In America.” The court found that and similar statements false.
- Albion’s president testified that he thought a “Made in America” label was fine if more than half of a tool’s cost was incurred in the USA. That is not the FTC standard.
- The court found that Albion’s claims had pulled sales away from Newborn, and that Newborn was entitled to recover Albion’s profits.
Remedies were left for later proceedings.
FAQ
Who sued Albion?
Competitor Newborn Bros. Co., in 2012.
Where were the products made?
Many were made in Taiwan.
What law applied?
The Lanham Act and New Jersey unfair competition law.
Source & credit
Source: Newborn Bros. Co. v. Albion Engineering Co., D.N.J., August 25, 2020: opinion via Justia.
Also: Rebecca Tushnet’s 43(B)log, September 9, 2020: case summary; Law360, August 25, 2020: “Caulking Co. Declared Liable For False ‘Made In USA’ Label”.