Williams-Sonoma (WSM) is a large US retailer facing a multimillion-dollar Federal Trade Commission fine for its Made in USA violations. The company advertised products manufactured in China and other countries as Made in the USA, violating the 2020 order that required Williams-Sonoma to be truthful about where its products are manufactured. CWEB details the exemplary and other compliances the San Francisco-based cookware and home products retailer must undertake.
On Friday, the FTC said Williams-Sonoma agreed to a settlement with the commission. The terms include a $3.175 million penalty. The company also has to submit annual compliance reports. The cookware and home furnishing company is also expected to follow several requirements when it makes claims about manufacturing.
FTC Chair Lina M Khan said, “Williams-Sonoma’s deception misled consumers and harmed honest American businesses. Today’s record-setting civil penalty clarifies that firms committing Made-in-USA fraud will not get a free pass.”
According to the FTC blog, in 2020, the commission alleged that Williams-Sonoma had made several misleading claims about its products’ manufacture origins on its website and catalog.
The blog mentioned that the cookware and home furnishing company’s products, such as Goldtouch Bakeware and upholstered furniture under the Pottery Barn Teen and Pottery Barn Kids brands, had misleading claims because they were not made in the nation.
The FTC has laid out rules for companies to comply with the Made in USA Standard and Made in USA Labeling Rule. It mentions that false or deceptive claims regarding these standards affect American consumers who buy these products and businesses that comply with the nation’s laws.
The exemplary and other compliance requirements imposed on Williams-Sonoma are expected to deter other companies from misleading American consumers with false advertising claims about products Made in the USA when they are partly or wholly manufactured in different countries.
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