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Hoover “Made in USA” Vacuums’ Parts Made in Hong Kong NY Class Action

For some consumers, it’s important to buy products made in the USA. Some companies display a “Made in USA” or “Made in America” sticker or seal to attract those people. But the complaint for this class action alleges that the seal applied to Hoover vacuum cleaners by their maker, Royal Appliance Manufacturing Co., misleads consumers, because its small print reads, “With Globally Sourced Components.”

The class for this action is all those who live in New York who bought the product during the applicable statutes of limitations.

According to the complaint, over 70% of Americans want to buy products made in the US. Some consumers want to support jobs and companies in this country. Others believe that, because the US is more highly regulated than some countries, its products will be safer. Companies thus may tout the US origins of their products to gain customers.

Royal Appliance also emphasizes the US origin on its Hoover products in other ways besides the seal, the complaint alleges. It points to Royal Appliance YouTube video called, “Made in the USA—Meet the people behind Hoover PowerDash.” The complaint quotes a worker in the video at the Cookeville, Tennessee facility who says, “When it says ‘made in America,’ I take pride in the fact that it’s made in Cookeville, that it’s made here, that we made it.” Another in the video says, “It makes me want to purchase that specific product because I know that my people made this.”

However, according to the complaint, US Customs records reveal that Royal Appliance “receives most of the parts and components for the products from China…” The complaint reproduces a part of such a record and alleges, “The company which exports the components from China to the U.S. is [Royal Appliance’s] parent company, a Chinese firm named Techt[r]onic Industries, headquartered in Hong Kong.

The complaint alleges that “a substantial transformation” must occur to justify the “Made in USA” claim, and that this does not happen with the vacuum cleaners because the “name, form and character of each component of the Products remain unchanged after they are assembled into the finished vacuum cleaners.” The complaint adds, “Most to all of the total manufacturing costs are attributed to overseas parts and processing.”

A designation called “Assembled in the USA” exists, but the complaint contends that it can be used “only is more than a ‘screwdriver’ assembly occurs”—that is, if it “involves complicated processes and skill.” The complaint contends that this is not true of the vacuum cleaners.

The complaint raises another point: Many Americans do not have a positive image of China or of goods coming from China. American companies, it says, are believed not to be able to cut corners the way some Chinese companies are believed to do.

The complaint thus alleges that Royal Appliance has “misrepresented the Product through affirmative statements and omissions.”

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Hoover “Made in USA” Vacuums’ Parts Made in Hong Kong NY Compliance

January 11, 2021

For some consumers, it’s important to buy products made in the USA. Some companies display a “Made in USA” or “Made in America” sticker or seal to attract those people. But the complaint for this class action alleges that the seal applied to Hoover vacuum cleaners by their maker, Royal Appliance Manufacturing Co., misleads consumers, because its small print reads, “With Globally Sourced Components.”

Hoover “Made in USA” Vacuums’ Parts Made in Hong Kong NY Compliance

Case Event History

Hoover “Made in USA” Vacuums’ Parts Made in Hong Kong NY Compliance

January 11, 2021

For some consumers, it’s important to buy products made in the USA. Some companies display a “Made in USA” or “Made in America” sticker or seal to attract those people. But the complaint for this class action alleges that the seal applied to Hoover vacuum cleaners by their maker, Royal Appliance Manufacturing Co., misleads consumers, because its small print reads, “With Globally Sourced Components.”

Hoover “Made in USA” Vacuums’ Parts Made in Hong Kong NY Compliance
Tags: Country of Origin, Deceptive Advertising, Deceptive Labels, Made In America Label, Not Made In America