NEW YORK, March 3 (Reuters) - The maker of Reynolds Wrap
aluminum foil must face a proposed class action claiming it
misled consumers who wanted to "buy American," by falsely
claiming that its foil was "Made in USA," a U.S. judge ruled on
Monday.
U.S. District Judge Andrew Carter in Manhattan said
consumers can try to prove that Reynolds Consumer Products ( REYN )
violated New York state consumer protection laws by
using false and misleading packaging for its namesake foil.
Reynolds and its lawyers did not immediately respond to
requests for comment.
According to the complaint filed last March, substantially
all bauxite in Reynolds' foil comes from outside the United
States, where little of the ore is produced, and much of it is
eventually transformed into aluminum outside the United States.
This made Reynolds' "Foil Made in USA" claim false and
misleading to reasonable consumers, because they would spend
more on products "made in America," the complaint said
The plaintiff, Anaya Washington of Bronx, New York, said she
bought Reynolds Wrap at Target and other stores, believing the
brand as trustworthy and familiar as Kleenex and Vaseline, and
wouldn't have bought the foil had she knows where it came from.
In seeking a dismissal, Reynolds said Washington relied on
generic "overpayment" accusations rather than show harm.
It also called the case "another lawyer-driven class action
seeking to profit from a truthful 'Made in the USA' statement."
But the judge said Washington plausibly alleged she paid
more than she would have but for the "Foil Made in USA" label.
The lawsuit seeks at least $5 million of damages.
Many lawsuits accuse companies of using imprecise 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" to protect businesses and consumers from
being misled over product origins.
U.S. President Donald Trump, meanwhile, is encouraging
global businesses to manufacture more products in the United
States.
Washington's lawyer did not immediately respond to a request
for comment.
The case is Washington v Reynolds Consumer Products LLC,
U.S. District Court, Southern District of New York, No.
24-02327.