New Balance ‘Made in the USA’ Labeling Under Scrutiny

Retail company New Balance has allegedly been using the “Made in USA” label, even though their footwear products are reportedly made of foreign made materials.

While California and other states in the country generally prohibit companies from using the “Made in USA” label, unless if all the components making up the product are actually made in America.

Is New Balance Misusing the Made in USA Label?

New Balance
and other companies often use the “Made in USA” label, to encourage consumers to purchase their products.

Oftentimes, products with “Made in USA” label are higher priced and are implied to support local businesses and the country’s overall economy.

This is because consumers often believe products that are marketed to be completely manufactured and produced in the United States are higher quality and will help support American jobs and United States economy.

According to a 2013 Consumer Reports survey, 60% of Americans stated they would pay 10% or more for an item made in the United States.

However some manufacturing companies take advantage of this customer loyalty and falsely use the “Made in USA” label to increase sales.

So, when companies are alleged to have used the label under false pretenses, consumers may seek legal recourse.

Currently, class action attorneys are investigating New Balance for allegedly using the “Made in USA” or “Made in the USA” label on products that were reportedly made from foreign components – in violation of California and federal marketing laws.

California “Made in USA” Label Policies

California Governor Jerry Brown has recently approved legal provisions which will allow California manufacturing companies to use the “Made in USA” label if at least 95% of the product is made in America.

According to Senate Bill 633, by Senator Jerry Hill, the new policy would replace the 1961 state law that had originally implemented the difficult standards.  Senator Hill states this new policy will help increase the creation of new jobs and manufacturing companies in the state of California.

However the Consumer Federation of California has opposed the bill, calling it out for essentially allowing false advertising.

The current federal standard for the “Made in USA” label requires that “all or virtually all” of the components of the product, along with the product itself, must be made in the United States.

Senator Hill counters that the proposed California legislation would match the federal standard, but would be a less “literal” approach.

Even with this proposed legislation, New Balance and other companies are still on the chopping block for allegedly misusing the “Made in USA” label. Recently, denim jean company Citizens of Humanity came under fire for similar allegations.

Consumers who purchased products from New Balance and other companies for the “Made in USA” label, may be able to file legal action against the company.

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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