LOOKING at the new iPad she received last Christmas, a young woman noted that it was “Designed by Apple in California, Assembled in China.” She asked what this meant, was the iPad made in the USA or not?
In recent years, there has been the common lament that nothing is Made in USA anymore. There is the general perception that most things are made in China or somewhere labor is cheap. The thinking seems to be that consumers will buy the cheaper product over the more expensive one, regardless of where it was made.
However, a survey conducted by the Consumer Reports National Research Center found that given the choice, 78 percent of Americans would rather buy an American product, rather than one made abroad, even though the product would cost more. Eighty percent of those surveyed reasoned that buying American retained manufacturing jobs in the US and kept American manufacturing strong in the global economy.
About 60 percent cited concerns about the use of child workers or other cheap labor overseas. The same 60 percent indicated that American-made goods were of higher quality. (Surprisingly, a survey conducted by the Boston Consulting Group revealed that 60 % of Chinese respondents said they will buy the American-made version over the Chinese even if it cost more.)
Whether for reasons of quality, safety, or patriotism, most consumers want to know where products are made. However, the way goods are labeled these days, it is not always clear what is made where. Some labels will have pictures of the American flag or contain the word “American” but the products are not made in America.
Consumer Reports noted that “Made in USA” claims can either be unqualified or qualified. An unqualified claim means that “all or virtually all” of the product’s parts are from the US and the product is manufactured in the US. The source of confusion comes mainly from qualified claims, those products that are, for example, designed in the United States but manufactured abroad, such as the iPad example above.
The US Federal Trade Commission requires that product labels be clear and prominent to provide an accurate impression of where the product was made. This means that labels should not make any false claims or mislead consumers about the product’s origin.
California has perhaps one the toughest laws in the country concerning consumer rights in this instance. Making statements regarding the sale of goods or services that mislead the public is prohibited. These include:
1. Passing off goods or services as those of another. Examples may be found in the counterfeit luxury goods industry.
2. Misrepresenting the source, sponsorship, or certification of goods or services.
3. Using deceptive claims of geographic origin. For example, making claims that a product is Made in the USA when significant parts of are made outside the USA violates the law.
4. Representing that goods or services have ingredients, uses, benefits, or quantities which they do not have. For example, scientific claims that some herbal pills are effective for natural male enhancement, without substantiation, have resulted in lawsuits alleging misrepresentation.
Consumers who suffer any damage as a result of any false or misleading claims may bring an action against the company or person who violated the law. If the false or misleading claim has damaged others, an individual may sue on his/her behalf as well as on behalf of persons equally affected. Aggrieved consumers may be entitled to actual damages, a court order to restrain the false or misleading practices, and restitution of property.
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C. Joe Sayas, Jr., Esq. is an experienced trial attorney who has successfully obtained significant results, including several million dollar recoveries for consumers against insurance companies and big business. He is a member of the Million Dollar-Advocates Forum—a prestigious group of trial lawyers whose membership is limited to those who have demonstrated exceptional skill, experience and excellence in advocacy. He has been featured in the cover of Los Angeles Daily Journal’s Verdicts and Settlements for his professional accomplishments and recipient of numerous awards from community and media organizations. His litigation practice concentrates in the following areas: serious personal injuries, wrongful death, insurance claims, unfair business practices, wage and hour (overtime) litigation. You can visit his website at www.joesayas law.com or contact his office by telephone at (818) 291-0088.