Walmart Avoids Federal Action

Screen Shot 2015-10-22 at 14.30.11Walmart has successfully avoided action by the Federal Trade Commission (“FTC”) concerning Walmart’s mislabeling of products as  “Made in the U.S.A.,” when they were, in fact, not made in the U.S.A.

The retailer was forced to remove “Made in the USA” logos from its website after an inquiry by the Federal Trade Commission into its labeling practices.

In a letter dated October 20, 2015, the FTC confirmed that it would not pursue legal action against Walmart because, among other things, Walmart had taken voluntary steps to “prevent consumer deception,” including removing “Made in USA” logos from product listings on its website and removing U.S. country of origin claims that appeared in product descriptions or titles. Also, in some cases, Walmart is also making more detailed disclosures regarding the percentage of U.S. content contained in the products.

Walmart’s conduct was particularly troubling because, two years ago, Walmart announced a plan to source an additional $250 billion worth of U.S-made goods over the following decade, part of a campaign to improve its reputation as a corporate citizen.


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