04/25/2024

“Made in USA” Spurs Lawsuits

But that’s a problem in California, which has the strictest guidelines in the country. If even one rivet in a larger product is foreign, state law says it amounts to false advertising to call it U.S. made.

The result: A host of consumer lawsuits against manufacturers, including two against Lifetime in which people complained they had been duped by the company’s labeling. Makers of everything from door locks to hand tools have been sued in recent years. A maker of helium tanks designed to be used at children’s parties was sued because it started packing imported balloons with the equipment. Another case involved Mag Instruments, a California company that produces Maglite flashlights. It was sued for using small rubber rings and light bulbs from abroad.

. . . The two suits were ultimately certified as a single class action and were settled last spring in a state court in San Diego. The court awarded plaintiff’s attorneys $485,000, and Lifetime agreed to donate an additional $325,000 to charity and to offer discounts to consumers who had bought basketball equipment in the past. One of the two named plaintiffs was awarded $4,500, the other $3,500. The company says the bill for its legal team added an additional $535,000.

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