California State Legislators Make it Easier for Made in USA Label Requirements

Manufacturers selling goods in California were long required to adhere to strict laws regarding advertising and product labeling, especially when making a “Made in the USA” claim.

For years, the state standard required that any product claiming to be American made must not contain any parts manufactured in other countries.

Gov. Jerry Brown recently signed a bill relaxing this standard and bringing California closer in line with all other states, which follow the standard set by the Federal Trade Commission. The FTC defines products as being Made in America if “all or virtually all” of the parts were produced in the United States.

Under California’s new standard, manufacturers selling goods in California can make the claim as long as at least 90 percent of their product is made in the U.S.

Assemblyman Brian Jones, co-writer of the bill with state Senator Jerry Hill, stated that this bill was needed to provide some flexibility to California retailers. Jones stated that the requirement for products with Made in America labels to be completely American made is overly burdensome.

Critics of the bill believe it is giving manufacturers a pass to cheapen the quality and manufacturing costs of their products, and is deceitful to California consumers.

California’s Made in America Regulations

Executive director for the Consumer Federation of California Richard Holober stated that manufacturers have never had a problem meeting the standards of California’s stricter rule in the past.

He believes that if California lowers its standard, it may hinder hard-working companies who meet the stricter Made in America standard, and gives an undeserved advantage to companies who cut corners.

Proponents of the bill, however, believe they are adjusting the law to meet the standards of the 21^st century and to bring California in line with other state and federal regulations.

Supporters of the bill state that California’s higher standard for the Made in the USA label makes it nearly impossible for local manufacturers to apply the label to their products, even when the majority of the product is made in America, thus putting them at a competitive disadvantage.

This new law could affect manufacturers who sell to California consumers, from major companies to local mom-and-pop shops. One of America’s leading denim jean designers and manufacturers, Citizens of Humanity, could be alleviated of false advertising charges from jilted consumers.

The company has been accused of using foreign components in their jeans but advertising the finished products as Made in America. Consumers were outraged to learn this, with many taking legal action against the company.

Join a Free Citizens of Humanity ‘Made in the USA’ Class Action Lawsuit Investigation

If you purchased one or more Citizens of Humanity apparel products in California in the past four 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.

Learn More