Stanley settles 'Made in USA' case with FTC
By Staff -- Industrial Distribution, 3/1/1999
WASHINGTON, D.C.--Stanley Works, the nation's largest tool manufacturer, settled Federal Trade Commission charges that it misled consumers with false "made-in-USA" claims for several products.In January, the FTC accepted consent agreements with several companies, including Stanley, the New Britain, Conn., manufacturer of tools, hardware and home-decor products. Other companies involved include the U.S. distributor for Honda Motor Co. and Kubota Tractor Corp., which both make lawn mowers.
In settling the cases, the companies did not admit to any wrongdoing. But the agency may fine the firms $11,000 for any violation of the agreements, which prohibit them from misrepresenting the extent to which their products are made in the United States.
The government agency's standard says that unqualified U.S.-origin claims must be substantiated by evidence that "all or virtually all" of a product is made in the United States. To define that, the FTC considers where final assembly takes place, the portion of manufacturing that is attributable to U.S. parts and processes, and foreign raw materials.
"We voluntarily took actions to meet or exceed the latest and most stringent FTC guidelines," Stanley chairman John M. Trani said in a statement. After changes in FTC regulations were made last year, Stanley returned some of its overseas metal forging operations to the United States. A "very small" percentage of forging for mechanics' tools was done overseas, spokesman Vance Meyer said.
In its case against Stanley, the FTC said there was "significant" foreign content in several models of wrenches and other tools sold under the Husky and Proto brand names. But the company stamped many with a "USA" mark, then packaged and advertised them as U.S.-made, the FTC said. The settlement doesn't require any changes in Stanley's practices, the company said.
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
