The Federal Trade Commission closed its investigation of Whiteside Machine & Repair Company in a staff letter dated February 5, 2019. Staff had been concerned that marketing overstated how much of Whiteside’s products, including router bits, are made in the USA.
The concern
According to the letter, Whiteside performs some manufacturing in the USA, but many of its products contain significant imported components. The FTC said unqualified claims that products are “Made,” “Built” or “Manufactured” in the USA likely suggest that every product advertised is “all or virtually all” made in the USA.
Whiteside’s fixes
- Stickered over outdated claims on product packaging.
- Updated online marketing materials.
- Printed new catalogs, signs, banners and packaging.
- Required dealers to sticker over claims on products they hold, remove potentially deceptive point-of-sale materials, and update their websites and social media.
The letter noted that it is appropriate for Whiteside to promote facts about its USA operations. Staff closed the matter without further action. It was one of several closing letters in early 2019, including one to 3D Solutech later that month.
FAQ
What did the FTC find about Whiteside?
Whiteside does some manufacturing in the USA, but many of its products contain significant imported components.
What did Whiteside require of dealers?
To sticker over claims on products, remove potentially deceptive point-of-sale materials and update their online materials.
Was Whiteside penalized?
No. FTC staff closed the matter after the remedial steps.
Source & credit
Source: FTC staff closing letter to Whiteside Machine & Repair, February 5, 2019.
Also: Baker McKenzie: “FTC continues to look at ‘Made in USA’ and similar claims”; Frankfurt Kurnit Klein & Selz via Lexology: “The FTC’s Back & Looking at ‘Made in USA’ Claims”.