Unqualified “Made in USA Claims” and Recycled Materials

Advertisers and manufactures that utilize unqualified “Made in USA” claim in conjunction with their advertising, marketing, markings, packaging and labeling are at increased risk of private or regulatory scrutiny relating thereto.  See the Essential Guide to Made in USA Advertising written by Made in USA lawyer Richard Newman for more information.

For purposes of this article, the issue is whether it is unlawful to make an unqualified “Made in USA” claim for products made from recycled materials.  For example, an unqualified “Made in the USA” claim for a product made from minerals and metals recycled in the United States.

The investment of significant time and resources into collecting recyclable material, delivering it to refiners in the United States, and then processing to a purity level of almost 100% may not be enough, alone, to assign a new and different origin to recycled material.

Notable is a prior Federal Trade Commission advisory opinion on the issue that references consumer perception testing on U.S.-origin claims.  It found that 57% of Americans – almost 3 in 5 – agree that “Made in America” means that all parts of a product, including any natural resources it contains, originated in the United States.  The survey also found that 33% of consumers think 100% of a product must originate in a country for that product to be called “Made” in the USA.

According to the FTC, a product made from minerals and metals made from recycled materials often contain raw materials of unknown origin.  Thus, because gold and precious minerals may be – and often are – mined internationally, it is highly likely that any piece of recycled jewelry, for example, might contain components or natural resources that originated outside the United States.

According to the FTC, consumers may be deceived by a Made in USA marketing claim for a product containing components or natural resources that originate outside the United States.  Advertisers and manufacturers should consult with an experienced FTC Made in USA lawyer to discuss whether an unqualified country-of-origin claim can be substantiated in light of whether all components of a recycled piece – including natural resources – originated in the United States.

Unqualified U.S.-origin claims are aggressively policed by regulatory agencies and the failure to ensure that reasonable evidence exists to support such claims may be considered unlaw and a violation of the FTC Labeling Rule.

Federal Trade Commission guidance reflects that when consumers view Made in USA representations, they expect advertised products to be “all or virtually all” made in the United States – all the way back to raw materials.  An experienced Made in USA lawyer is a valuable resource for those wishing to avoid regulatory scrutiny or private litigant threats where, for example, products are purchased from U.S. suppliers and the origin of raw materials is unknown.

Richard B. Newman is an advertising compliance and defense attorney at Hinch Newman LLP.

Informational purposes only. Not legal advice. This article is not intended and should not be construed as legal advice. May be considered attorney advertising.