FTC Mows Down Allegedly False “Made in USA” Claims

  • The FTC settled with Kubota North America Corporation and affiliated entities to resolve allegations the tractor maker violated the FTC Act and the Made in USA Labeling Rule by falsely labeling certain replacement parts as “Made in USA.”
  • The FTC’s complaint alleges that since at least 2021, Kubota has labeled thousands of replacement parts as Made in the USA when they were in fact wholly imported. Kubota was previously sued by the FTC in 1999 over allegations of false Made in USA claims regarding a line of lawn tractors, and had entered into a consent order that expired in 2019.
  • Under the terms of the settlement , Kubota must pay $2 million in civil penalties, which is reportedly the largest civil penalty ever assessed for a violation of the Made in USA Labeling Rule. In addition, Kubota is prohibited from making misleading or unsubstantiated representations regarding the country of origin of any goods or services, and must comply with recordkeeping and compliance monitoring requirements.