The “Made in USA” label sets a premium on the price consumers are willing to pay for an item. The Federal Trade Commission (FTC) ensures truthfulness in US-origin claims on products. Williams-Sonoma violated an FTC order from 2020 concerning Made in USA claims. They will now pay $3.175 million in civil penalties for those deceptive claims. Here’s how the company ended up paying a record fine for misusing the Made in USA label.
2020 FTC lawsuit
Four years ago, the FTC sued Williams-Sonoma for allegedly advertising that multiple brands were Made in USA when the products were not made in the United States. Williams-Sonoma agreed to stop their deceptive labeling practices and to follow the Made in USA labeling rules. The court order prohibited Williams-Sonoma from making misrepresentations about U.S-origins claims and required the company to make clear disclosures about their products and assembly practices.
New mislabeling claims in 2023
Last summer, a Truth in Advertising reader made a tip about a Pottery Barn’s Teen mattress pad that was advertised as “Made in USA,” but had labels on the product that identified it as being made entirely in China. TINA.org made a complaint to the FTC. The FTC investigated the mattress pad and six other products that were advertised as Made in USA. The agency found Williams-Sonoma in violation of the 2020 order.
The FTC voted to refer the case to the Department of Justice, which filed the complaint with the court. Williams-Sonoma agreed to settle the complaint by paying a record $3.175 million in civil penalties. In addition, they will be required to submit annual compliance certifications to the FTC that demonstrates the truth about the Made in USA claims.
Patriotic products can fetch a higher price on the shelf, but it’s best to be honest when labelling your products and where they’re made. Williams-Sonoma is not the first company accused of mislabeling products. Walmart has also been accused of misleading consumers. Earlier this year, Kubota North America Corporation was fined $2M for falsely labeling parts as Made in USA. These cases should remind businesses how important it is to correctly label products.
Dawn Brotherton is a Sr. Staff Writer at The American Genius with an MFA in Creative Writing from the University of Central Oklahoma. She is an experienced business writer with over 10 years of experience in SEO and content creation. Since 2017, she has earned $60K+ in grant writing for a local community center, which assists disadvantaged adults in the area.
