FTC Sues Glue Maker Chemence Over “Made in USA” Claims

The Federal Trade Commission sued Chemence Inc., an Ohio maker of fast-acting cyanoacrylate glues, on Feb. 2, 2016, alleging that its “Made in the USA” and “Proudly Made in the USA” claims were deceptive. Unusually for a Made in USA matter, the FTC went to federal court instead of closing the case with a warning letter.

The allegations

The complaint, filed in federal court in Ohio, covers glues sold under names including Kwik Frame, Kwik Fix and Krylex. The FTC said unqualified Made in USA claims tell shoppers that a product is all or virtually all made in the USA. But it alleged that about 55% of the cost of the glues’ chemical inputs came from imported chemicals essential to how the glues work.

The agency also alleged that Chemence gave retailers that sold its glues under their own brands marketing materials carrying the same claims, providing them the “means and instrumentalities” to mislead shoppers.

“For many shoppers, a claim that a product is made in the USA is a big selling point,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “Companies should not overstate the amount of U.S. content their products actually contain.”

Chemence responds

Chemence President Hugh Cooke called the accusations “flatly incorrect.” He said the company had made adhesives in the USA since the early 1990s while competitors imported and repackaged glue, and that the FTC let importers use a qualified “Made in USA with Domestic and Imported Material” claim while pressing domestic makers to do the same.

The case followed three FTC closing letters in 2015 to other glue makers over similar claims. Chemence settled later in 2016 for $220,000 (see our coverage), and in 2021 the FTC reached a $1.2 million order with the company over alleged violations of that settlement (coverage).