The impact of California’s rules for a “Made in USA” label

An article in the Wall Street Journal (October 1, 2014) titled “‘Made in USA” Spurs Lawsuits” describes the California Law that even one rivet in a product with such a label that is not made in the USA constitutes false advertising.  Basketball hoops with just a few bolts and net imported, USA made helium tanks shipped with imported balloons, rubber rings and light bulbs in Maglite flashlights – are all termed a violation in California even when the Federal Trade Commission (FTC) permits the label on all products that are “virtually all” made in the USA.  Is California’s 100% requirement a reasonable requirement to ensure that the intent of the label is satisfied and the benefits accrued only to manufacturers who comply? Will the impact of California’s stringent requirement be a decrease in the number of US manufacturers if they cannot get the market benefit of such labels ? Should states be required to generate consistent requirements for labeling so as to eliminate the ambiguity in Federal labeling laws ?

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About aviyer2010

Professor
This entry was posted in California, Capacity, consumer, Cost, Global Contexts, labeling, Liability, Made in USA, product, Supply Chain Issues and tagged , , , , . Bookmark the permalink.

One Response to The impact of California’s rules for a “Made in USA” label

  1. Ramesh Pudhucode says:

    I think given the high unemployment in the nation, there is no harm in forcing such rules. China has such restrictions and with the result there is hardly any unemployment there. Simiarly, Japan and S Korea encourages local industry with the result that Japan’s unemployment (3.8) is less than a very “advanced” state like Minnesota (4.1%).

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