FTC Looking for 'Made in USA' Case to Seek Monetary Penalties as Future Deterrent
The Federal Trade Commission would like to pursue monetary penalties for violations of "Made in USA" labeling requirements to serve as an example for other potential violators, FTC Chairman Joe Simons said during a Nov. 27 Senate Consumer Protection Subcommittee hearing. "We've only gotten injunctive relief in cases like this previously, but now we're exploring whether we can find a good case that would be appropriate for monetary relief to serve as an additional deterrent," Simons said. Sen. Shelley Moore Capito, R-W.Va., asked about the agency's handling of such cases. Simons previously mentioned a broad review of FTC enforcement actions after the agency settled "Made in USA" cases without any monetary penalties or admissions of guilt (see 1809130036). Soon after the settlement, three senators pressed the FTC to be tougher on enforcing the requirements (see 1810150040).
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Democratic FTC Commissioner Rohit Chopra echoed the need for more enforcement. "Right now, there's country of origin issues in agriculture, country of origin issues in product marketing," he said. "We have to do more to put a stop to this because this is extremely unfair to honest companies." Commissioner Rebecca Slaughter, also a Democrat, agreed that more enforcement would be nice, but noted that the agency would need to be able to show a monetary harm in order to pursue monetary penalties, which "can be very difficult to do."