In a case surrounding false “Made in USA” claims, the Federal Trade Commission (FTC) sends $140,000 in refunds to consumers. Three New England-based clothing companies misled consumers about where their product manufacturing occurred.

The FTC took action against Chaucer Accessories, Bates Accessories, and Bates Retail Group — all owned by Thomas Bates — in 2023. The federal agency alleged the companies falsely claimed their products as “Made in USA” or “Hand Crafted in USA” despite some products or components being imported from countries like Taiwan. These products included certain belts, bags, wallets, and shoes.

The 2023 complaint reads in part:

• “Respondents’ products were not all or virtually all made in the United States. Indeed, in numerous instances, they were wholly imported or incorporated significant imported components.”
• “CBP determined Respondents’ products were wholly imported with de minimis finishing in the United States. “

To make the situation right, the FTC sent money via check and PayPal payments to over 4,000 consumers who purchased the falsely labeled goods. According to Fashion Dive, a fashion and apparel news outlet, the complaint requires the accessories companies to pay the FTC more than $191,000 and adhere to strict guidelines around Made-in-USA claims.

With more and more consumers seeking out made-in-USA goods and willing to pay more for them, it’s imperative producers making claims can stand behind them.

“Why wait until the FTC or another law enforcer sends a subpoena before setting up an in-house compliance check?” said an April 2024 FTC blog about a case involving Williams Sonoma. “It doesn’t have to be fancy. Pertinent documents in a file folder or on your network are all you may need to back up your claims.”