by the law B Made in the USA DAVE RESSER, WEGMAN, HESSLER & VANDERBURG, CLEVELAND
ing back to the U.S. Whether the new administration can deliver on these promises remains to be seen, but it may be a good time to review government standards for the phrases “Made in the USA” and “Made in America.” Often, these promotional claims are made to im- ply quality and/or inspire purchases based on patriotism or a desire to help Amer- ican-owned businesses. As these factors can be quite persuasive, and the U.S. government has an interest in prohibiting false advertising, the qualifi cations for a promotional phrase such as Made in the USA is regulated under the auspices of the Federal Trade Commission (FTC). You might be curious as to how the FTC defi nes Made in the USA and how that aff ects metalcasters and their suppliers. T e FTC’s Made in the USA policy applies to all products advertised or sold in the U.S., except for products specifi cal- ly subject to country of origin labeling by other laws. Two examples of these other laws include the American Automobile Labeling Act and the Buy American Act. T e American Automobile Labeling Act requires each automobile manufactured on or after October 1, 1994, for sale in the U.S. bear a label disclosing where the car was assembled, the percentage of equipment that originated in the U.S. and Canada, and the country of origin of the engine and transmission. T e Buy American Act requires that a product be manufactured in the U.S. of more than 50% U.S. parts to be considered Made in the USA for government procure- ment purposes. T ere is no other law that requires most other product sold in the U.S. to be marked or labeled Made in the USA or have any other disclosure about their amount of U.S. content. However, manufacturers and marketers who choose to make claims about the amount of American content in their products must comply with the FTC’s Made in the USA policy. T e enforcement policy of the FTC
A
new presidential ad- ministration has taken offi ce, and it has made some appealing promises to bring manufactur-
applies to U.S. origin claims appearing on products and labeling, advertising and other promotional materials. It also applies to all other forms of marketing, including marketing through digital or electronic means, such as the internet or e-mail. T e Made in the USA claim can be express or implied. For example, ex- press claims can include “Made in USA,” “Our products are American-made,” and “USA.” Examples of implied claims can include indications such as “True Ameri- can quality.” In cases of implied claims,
“ 48 | METAL CASTING DESIGN & PURCHASING | May/Jun 2017
are used in assessing the product’s manufacturing process. Primarily, the product’s fi nal assembly or processing must occur in the U.S. Other factors in- clude: how much of the product’s total manufacturing costs can be assigned to U.S. parts and processing and how far removed any foreign content is from the fi nished product. For example, if a foundry supplier produces a core ma- chine in Oklahoma and uses blow tubes from a foreign manufacturer, then an unqualifi ed Made in the USA claim is
Manufacturers and marketers who choose to make claims about the amount of American content in their products must comply with the FTC’s Made in the USA policy.”
the FTC will focus on the overall impres- sion of the advertising, label, or promo- tional material. American symbols or geographic references may convey a claim of U.S. origin either by themselves or in conjunction with other phrases or images. An American brand name or trademark by itself is not likely to be considered a U.S. origin claim. American origin claims can be
unqualifi ed or qualifi ed. Claims of American origin made without any qualifi cation must be “all or virtually all” made in the U.S., which includes all 50 states, the District of Columbia, and the U.S. territories and possessions. T is leads to the obvious question, “How is ‘all or virtually all’ actually interpreted by the FTC?” T is phrase has been interpreted to mean that all signifi cant parts and processing that go into the product must be of U.S. origin. T at is, the product should contain no—or negligible—foreign content. T is may seem to be open to interpretation, but the FTC has been rather reasonable in its explanations regarding “negligible foreign content” and several factors
not likely found to be deceptive because the blow tubes make up a negligible portion of the product’s total manufac- turing costs and are less than signifi cant parts of the fi nal product. If you feel your castings or casting sup- plies do not meet the standard for an un- qualifi ed claim such as Made in the USA, qualifi ed claims are also accepted by the FTC. Qualifi ed Made in the USA claims describe the extent, amount or type of a product’s domestic content or process- ing. In essence, they indicate the product is mostly American, but isn’t entirely of domestic origin. Some examples may in- clude: “60% U.S. content,” “Made in USA of U.S. and imported parts,” or “Molding machine assembled in USA from Chinese frame and other foreign parts.” T e FTC is charged with prevent- ing deception and unfairness in the marketplace. T e FTC has the power to bring law enforcement actions against false or misleading claims that a product is of U.S. origin. Should you have further questions regarding the use of Made in the USA claims, please consult your business attorney. ■
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