Companies Settle Over ‘Made in USA’ Labels

The Federal Trade Commission said six companies, including the U.S. unit of Honda Motor Co. and New Britain, Conn.-based toolmaker Stanley Works, settled charges that they made misleading “Made in USA” claims for a variety of products. The FTC said the products in question were all made with significant foreign components or labor. The settlements prohibit further misrepresentation, and future instances could result in a penalty of $11,000 per violation. After considering a looser standard for “Made in USA” products, the FTC in late 1997 decided to continue with an “all or virtually all” standard. The other four companies that settled are the U.S. unit of Japan’s Kubota Corp.; Johnson Worldwide Associates Inc., based in Sturtevant, Wis.; New York-based Rand International Leisure Products Ltd.; and Fremont, Calif.-based USDrives Corp., a unit of Taiwanese manufacturer Pan International Industry.