NEW YORK, March 28 (Reuters) - The maker of Reynolds
Wrap aluminum foil is being sued in a proposed class action
claiming it misleads consumers by saying the foil is "Made in
USA" though much of the raw material and manufacturing comes
from elsewhere.
According to a complaint on Wednesday night, substantially
all bauxite that Reynolds Consumer Products ( REYN ) uses in its
foil comes from outside the United States, which accounts for
only a small percentage of global production of the ore.
The complaint filed in Manhattan federal court also says a
substantial amount of the bauxite is transformed into alumina
and then into aluminum outside the United States.
This makes Reynolds' "Foil Made in USA" claim on its
packaging false and misleading to reasonable consumers, because
they "value buying products which are made in America" and
therefore would pay more, the complaint said.
Reynolds, based in Lake Forest, Illinois, declined to
comment, saying it does not discuss pending litigation.
The lawsuit is led by Anaya Washington of Bronx, New York,
and seeks at least $5 million of damages for New Yorkers who
bought Reynolds Wrap foil in the last three years.
Washington said she bought her foil at a Target because she
trusted the Reynolds Wrap brand, calling it as familiar as
Kleenex and Vaseline, and likes to "buy American." She said she
wouldn't have done so had she known where her foil came from.
The lawsuit is one of hundreds accusing companies of using
insufficiently precise labeling that induces shoppers to pay
more, including through appeals to their patriotism.
In 2021, the U.S. Federal Trade Commission adopted a "Made
in USA Labeling Rule," which the complaint cites, to protect
businesses and consumers from being misled over product origins.
The case is Washington v Reynolds Consumer Products LLC,
U.S. District Court, Southern District of New York, No.
24-02327.