March 2008
Product origin
A direct "made in the USA" claim means that "all or virtually all" significant parts and processing are of U.S. origin. But "qualified" claims are also allowed, including "made in the USA of U.S. and imported parts." Companies must be able to back up either type of claim.
In general, imports must be labeled with their country of origin. Among fresh foods, only imported seafood and shellfish must be labeled. The only U.S.-made products that have to say so are seafood, cars, furs, and some clothing, textiles, and woolen goods.
Look for "designed in" or "packaged in" to emphasize a U.S. connection, followed by "assembled in" or "made in," referring to the actual country of manufacture. Marketers can land in hot water with the Federal Trade Commission if they use vague, standalone terms such as "created in the U.S." to describe, say, a product invented in Seattle and made in Bangladesh, because consumers are likely to interpret "created" as all-inclusive. It's legal to use simply "assembled in the U.S." if the last "substantial transformation" took place in this country—in other words, if the finished product was created here.
The package's seal says "certified made in USA," but elsewhere two components are identified as imported. That's OK by Federal Trade Commission standards, which consider, for example, total manufacturing cost (the flag itself represents most of the cost) and whether the final assembly is in the U.S.
A so-called American car might not be "all American." An American car, according to the National Highway Traffic Safety Administration, must have at least 75 percent of its value added (labor and parts) in the U.S., Canada, or Mexico. Ford, an American company headquartered in Dearborn, Mich., makes most of its cars in the U.S. or Canada, like other U.S. nameplates. But the company also produces the Fusion, Milan, and MKZ, and at least 60 percent of their content is made elsewhere.
Some packages for household goods (here, a padlock) incorporate symbols—flags, eagles, stars and stripes, maps, the Statue of Liberty—to make an implied made-in-America claim. Whether a symbol is misleading depends on whether the product's origins are likely to be misunderstood. FTC attorney Laura Koss says this brand name and packaging are worrisome: The lock was assembled in Mexico.
Because of a quirk in labeling laws, imported produce sold in a package must identify its country of origin, but produce sold loose in bins doesn't need to. The 2002 Federal Farm Bill requires country-of-origin labeling on all produce and on meat, but implementation has been postponed until at least next fall, says Billy Cox, a public affairs spokesman for the Department of Agriculture.
Yes, "America's Favorite Mushroom" is a product of China. (We wondered about that, but an operator at Giorgio Foods, parent company of Pennsylvania Dutchman, told us "absolutely no one" could respond to media inquiries.) A brand name alone, even one including "America" or a city or state, does not constitute a made-in-America claim; the context is important.
Laura Fleming of the Alaska Seafood Marketing Institute says the salmon shown at right is from Alaskan waters but took a detour to Thailand for processing and packaging before being returned to the U.S. for sale. Fleming says it can be cheaper to have the fish skinned and boned overseas, and the package must acknowledge the salmon's side trip.
