FTC Seeks Civil Penalties for “Made in USA” Labeling Violations

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On June 22nd, the FTC issued a staff report and a proposed rule that would include the possibility of civil penalties up to $43,280 per violation of unqualified claims on product labels. As a custom US manufacturer of RF Microwave components, Coaxicom is proud to be “Made in the USA”, and we applaud this action.

American Made Manufacturing

Made in USA United States. Ensuring compliance with manufacturing claims is now a high priority for the FTC, enacting stiff penalties for violators.

The FTC Staff Report reflects findings from its workshop reviewing Made in USA labeling policy and enforcement. In particular, Staff cited a 2013 consumer perception study that indicates that Americans “agree that ‘Made in America’ means that all parts of a product, including any natural resources it contains, originated in the United States.” Another study from the University of Chicago cited in the report found that consumers were willing to pay as much as 28 percent more for U.S.-made products. Panelists reported that consumers prefer American made goods due to the “qualify of goods, promotion of U.S. jobs, social responsibility, and, to a lesser extent, general patriotism.”
FTC Chairman Joseph Simons joined Commissioners Rohit Chopra and Rebecca Slaughter in support of the proposed rule, which would prohibit marketers from including unqualified Made in USA claims on product labels unless they can show that: all significant processing that goes into the product occurs in the United States; all or virtually all ingredients or components of the product are made and sourced in the United States or final assembly or processing of the product occurs in the United States;
In particular, Companies working with government contracts should closely monitor these developments and the impact on their supply chain. The RF Microwave industry has been inundated with companies making false claims about the U.S. origin of their products, and many industry leaders anticipate stricter enforcement of the policy. At a minimum, that should review existing supply chain claims, and closely adhere to the country of origin requirements.
As a Florida-based, women-owned manufacturer, Coaxicom looks forward to the increased scrutiny within the industry. “While our Coaxicom line is certified Made in the USA, we also work with clients seeking a commercial grade product at a lower cost of delivery,” says Donna Haas, CEO and Co-Owner of Coaxial Components Corp, the parent company of Coaxicom. “Through Coaxial Components Corp, we work with global manufacturing partners to meet the economic needs for these higher volume, lower precision requirements. Full disclosure in the quoting process is critical to ensure compliance at every level.”

Coaxial Components Corp is your best resource for MIDISCO, Microwave Distributors Company, and Dal-Tech Devices components. Coaxicom’s manufacturing facility is ISO certified and ITAR compliant, offering an extensive line of RF connectors, adapters, attenuators, terminations, torque wrenches and cable assemblies. To speak with an engineering consultant, call 772-287-5000 or view the complete product line at Coaxicom.com.