New Balance Tennis Shoes: Made in the USA?

Many Americans buy products labeled Made in USA because they think they are of higher quality and because they want to support the U.S. economy.

But, clothing manufacturers and distributors selling products marked as ‘Made in the USA’ may face an increased risk of being sued in California if those products contain even minor foreign components.

Take for instance, Boston-based sneaker maker, New Balance.  The company has long touted its New Balance tennis shoes as being made in the USA.  However, this may not be entirely accurate.

New Balance Tennis Shoes: Truth in Labeling?

A 2014 Wall Street Journal article reported that the shoe maker admitted that only 70 percent of New Balance tennis shoes are Made in the USA.  The other 30 percent, such as the outer soles of New Balance tennis shoes are imported from China, clashing with the guidelines set forth by the U.S. Government regarding Made in the USA labeling.

When New Balance slapped a Made in USA label on its New Balance tennis shoes, it ignited an intense legal battle between the shoe maker and the Federal Trade Commission over an “all or virtually all” standard when it comes to advertising a product as being Made in the USA.

Though the FTC eventually withdrew its lawsuit against New Balance tennis shoes, many consumers and attorneys say that New Balance is misleading consumers by labeling certain shoes as being Made in the USA.

California Holds Stricter Made in USA Labeling Regulations

The Federal Trade Commission (FTC) guidelines provide that Made in the USA or similar claims mean that “all significant parts, processing, and labor that go into the product must be of U.S. origin.”  Not all component parts, however, need to be made in the United States.

Under the FTC guidelines, a product may still be labeled Made in USA if the imported component parts make up a “negligible” portion of the final product.

However, California’s requirements are more stringent and prohibit Made in USA labeling where “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 construed broadly by California courts.  One court said tools were not Made in USA because some components “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” as meaning “where the foreign operation, process, or activity employed to create the merchandise is found to be considerable in either amount, value, or worth.”  It held that a lockset was not Made in USA in part because foreign-made screws and pins were a “distinct component of merchandise that is necessary for its proper use or operation.”

In other words, California’s Made in USA labeling law is stricter than federal law because it requires that 100 percent of the materials used to make the product be American made.

Apparel companies are particularly vulnerable to claims of violating this law, as their goods are typically composed of many components sourced from numerous locations around the world.

If you purchased certain New Balance tennis shoes in California that bore a “Made in the USA” label 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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