Made in the USA Claims and Consumer Surveys
“Made in the USA” claims frequently comes under regulatory scrutiny by the FTC. Where jewelry is made from recycled or repurposed metals, whether it is made in the USA becomes a matter before the FTC.
Investigation
A jewelry manufacturer came under investigation by the FTC for claiming that its recycled products were made in the USA. The manufacturer collected jewelry and melted it down to create new jewelry, which is not a new process. However, when marketed as “made in the USA,” the jewelry became problematic. The FTC has established policies on claims that a product was made in the USA, meaning that all or virtually all of the manufacture must take place in the USA. Where mining is concerned, this becomes complicated.
Not wanting its reputation tarnished, the manufacturer argued that the components were so chemically altered that they reached a purity level of 100%. Further, they argued that they collect this jewelry from so many places that it is too difficult to track. They called the melting process and manufacture giving the materials a “new lifecycle,” thus resetting the original origin as the US. Since this recycling process occurs in the United States, and the manufacture occurs in the United States, they argued that they could use this claim.
Consumer Perception Survey Evidence
The FTC commissioned consumer perception surveys to determine how consumers interpret the Made in the USA claim. The surveys found that 57% of respondents agreed that the claim refers to all parts of a product, including natural resources. Further, they found that 33% of consumers think 100% of a product must originate in a country for it to be advertised as “Made in” that country.
FTC Ruling
Since the sources of some resources were difficult to trace, especially after the chemical process, the FTC ruled that the manufacturer was not able to use the Made in the USA claim without qualifying it further. In order to use a Made in the USA claim, manufacturers must ensure that all or nearly all resources and components are made or sourced in the country of origin.
Made in the USA Claims and Consumer Surveys
Made in the USA claims are typically judged by an objective standard. However, where the chain of origin and manufacture are unclear, businesses may face FTC scrutiny. The FTC used a measure of consumer perception to make a determination of whether the claim was substantiated. If you’re interested in discussing how a consumer survey can help your business, contact MMR Strategy Group today.