More than 15 years after ending a lengthy legal battle with the Federal Trade Commission in the mid-1990s, sneaker-maker, New Balance, continues boldly to tout its products as “Made in USA” without qualification, even when doing so flouts the FTC’s requirement that “all or virtually all” of the product must be made in this country before a manufacturer can make such a claim. New Balance’s “Made in USA” claim is an integral part of its marketing; and is a central means by which it attempts to distinguish itself from other sneaker companies whose reputations are of using cut-rate, foreign manufacturing. Yet, New Balance’s claims of domestic manufacturing are not only potentially misleading, but also aggressively skirt a consent decree the company entered with FTC last decade, in which it agreed not to label as American-made any sneakers not completely made in America.
New Balance has now adopted its own standard by which claims that any product either 70% made or assembled in the USA is “Made in USA.” However that definition has never been approved, or even submitted for approval to FTC. Moreover New Balance reportedly includes in certain places on its website or product packaging an unqualified “Made in the USA,” claim, complete with American flag imagery, while only providing a qualified claim elsewhere, in which it explains that up to 30% of the sneaker’s materials or assembly has occurred abroad. In short, consumers may be being deceived when they favor these shoes over those of New Balance’s competitor based on the belief that they are made at home.
If you, or someone you know, has been deceived by the “Made in USA” claims of New Balance or another company, please contact us to discuss your legal options.