New Balance Shoes Under Scrutiny for Made in USA Label

Americans typically purchase products labeled Made in USA believing they are of higher quality and because they want to contribute to the U.S. economy and jobs.

But, manufacturers and distributors selling clothing and accessories marked as ‘Made in the USA’ may face tougher state laws, especially in in California, if those products are made with even minor foreign parts.

For example, popular U.S.-based shoe maker, New Balance.  The company has long labeled its New Balance shoes as being made in the USA.  However, this labeling may not be entirely true.

Are New Balance Shoes Mislabeled?

In 2014, the Wall Street Journal reported that New Balance shoes are made with components from other countries – a fact the shoe maker even admitted to.

Specifically, the article reported that only 70 percent of New Balance shoes are actually Made in the USA.  The remaining 30 percent including the outer soles of New Balance shoes are imported from China, directly conflicting with Made in USA labeling guidelines set by the Federal Trade Commission.

Under the FTC guidelines, a product may still be labeled Made in USA if the imported components form a “negligible” portion of the final product.

However, the state of California has much stricter requirements where Made in USA labeling can only be used if “the merchandise or any article, unit, or part thereof, has been entirely or substantially made, manufactured, or produced outside of the United States.”

What constitutes “substantially made” and what constitutes a “part” has been contested in California courts.  One court ruled tools were not Made in USA because some parts “underwent manufacturing processes abroad” and “the foreign inputs into the tools and their component working parts were direct, significant, and not far removed from the finished product.”

Another court defined “substantially made” to mean “where the foreign operation, process, or activity employed to create the merchandise is found to be considerable in either amount, value, or worth.”

It deemed that a lockset was not Made in USA partly because the screw and pins were foreign-made, a component that was a “distinct component of merchandise that is necessary for its proper use or operation.”

Specifically, California’s Made in USA labeling law is more stringent than federal law because it requires that 100 percent of the materials used to make products such as New Balance shoes be made in America.

Companies like New Balance are especially at risk to Made in USA labeling violations, as their products are typically comprised of many parts or materials obtained from foreign countries.

If you purchased certain New Balance shoes in California with a “Made in the USA” label anytime in the last two years, you may be able to seek compensation by joining a class action lawsuit investigation.

Join a Free New Balance ‘Made in the USA’ Class Action Lawsuit Investigation

If you purchased one or more New Balance shoes in California in the past two years based, in part, on a “Made in the USA” label, you may be able to seek compensation by joining a class action lawsuit investigation.

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