July 8 (Reuters) - The U.S. Federal Trade Commission on
Tuesday called on Amazon.com ( AMZN ) and Walmart ( WMT ) to
crack down on third-party sellers that make deceptive "Made in
USA" claims on the retailing giants' online marketplaces.
In letters to Amazon ( AMZN ) and Walmart ( WMT ), the FTC said it learned of
several instances where third-party sellers falsely claimed
their products were made in the United States.
The FTC urged both companies to take "corrective action"
against sellers whose "Made in USA" claims violate federal law
and Amazon's ( AMZN ) and Walmart's ( WMT ) codes of conduct.
Four smaller retailers also received FTC warning letters
demanding they cease "Made in USA" claims unless they prove "all
or virtually all" of the products in question are made
domestically.
The four retailers are Oak Street Bootmakers in Chicago;
Stand Flag Poles in Fort Lauderdale, Florida; football equipment
maker Pro Sports Pads in Jacksonville, Florida, and medical
products maker USA Big Mountain Paper, also in Jacksonville.
Walmart ( WMT ) had no immediate comment. The other five companies
did not immediately respond to requests for comment.
"Consumers want to have confidence that when they buy
something labeled 'Made in the USA' they are actually supporting
American workers and the American economy," FTC Chairman Andrew
Ferguson said in a statement.
Many companies have been accused by regulators or in private
lawsuits of using imprecise labeling to induce shoppers to pay
more, including through appeals to their patriotism.
In 2021, the FTC adopted a "Made in USA Labeling Rule" to
protect businesses and consumers.
The agency later brought cases against kitchenware and home
furnishings retailer Williams-Sonoma ( WSM ) and Pyrex kitchenware maker
Instant Brands, and said it obtained $15.8 million of judgments
in 11 "Made in USA" enforcement actions between 2021 and 2024.