When a product is labeled as “Made in the USA,” Federal Trade Commission (FTC) regulations require that “all or virtually all” of it be made in the United States. This class action sues New Balance Athletics, Inc., claiming that some of the shoes it prominently advertises as being “Made in USA” have a significant portion of their components made in other countries.
The class for this action is all persons in the US who bought the following sneakers, in Men’s, Women’s, or Unisex styles and in a variety of color patterns:
- Made in USA 990v2
- Made in USA 990v3
- Made in USA 990v4
- Made in USA 990v5
- Made in USA 992
- Made in USA 993
- 1540v3
New Balance makes certain sneakers it claims are “Made in the USA.” The complaint shows images of some of these claims on pages 9-11. The 990v5 and 990v4 have a flag on the tongue of each shoe, above the laces, along with the words “Made in USA.” The 990v3, 990v2, and 993 similarly have “made in USA” on the tongues.
Although the 992 and 1540v3 do not have these representations on the tongues, the New Balance website shows them on its “Footwear Made in the USA” collection page; it identifies the 992 as “Made in USA 992.”
Page 12 of the complaint shows the inside labels of the tongues of the shoes, repeating the claim that they are “Made in USA.” It also shows a box with the claim, “made in the U.S. for over 75 years.”
“However,” the complaint alleges, “the Sneakers have as much as 30% of their components made outside of the United States—including the sole of the Sneakers, which is an important aspect of the shoes.” This 30% is a significant proportion of the elements that go into a shoe.
Furthermore, the complaint alleges that the 1540v3 sneakers should not be listed on the “Footwear Made in the USA” page because its “product page contains a small print disclaimer in small font stating, ‘As of April 2021, the 1540v3 will no longer be produced in the United States.”
The FTC requires that products that bear a “Made in USA” labels must be “all or virtually all” made in the US. The complaint quotes the FTC’s rules as saying that “‘[a]ll or virtually all’ means that all significant parts and processing that go into the product must be of U.S. origin. That is, the product should contain no—or negligible—foreign content.”
According to the complaint, New Balance “has been called out by the FTC for its deceptive representations. Yet [New Balance] continues to knowingly make these misrepresentations because consumers are willing to pay more for products that they believe are actually made in the United States.” New Balance agreed to a settlement in a case concerning “Made in USA” claims for footwear made between January 1, 2012 and January 1, 2019.
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
New Balance “Made in USA” Shoes Are 30% Foreign, Says Complaint
December 20, 2021
When a product is labeled as “Made in the USA,” Federal Trade Commission (FTC) regulations require that “all or virtually all” of it be made in the United States. This class action sues New Balance Athletics, Inc., claiming that some of the shoes it prominently advertises as being “Made in USA” have a significant portion of their components made in other countries.
New Balance “Made in USA” Shoes Are 30% Foreign, Says ComplaintCase Event History
New Balance “Made in USA” Shoes Are 30% Foreign, Says Complaint
December 20, 2021
When a product is labeled as “Made in the USA,” Federal Trade Commission (FTC) regulations require that “all or virtually all” of it be made in the United States. This class action sues New Balance Athletics, Inc., claiming that some of the shoes it prominently advertises as being “Made in USA” have a significant portion of their components made in other countries.
New Balance “Made in USA” Shoes Are 30% Foreign, Says Complaint