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Glue Manufacturer in Sticky Situation Over Unqualified “Made in USA” Claims

  • The Federal Trade Commission (“FTC”) reached a settlement with glue manufacturer Chemence, Inc. and its president (collectively “Chemence”) to resolve allegations that Chemence deceptively labeled its fast-acting glues as “Made in USA” in violation of the FTC Act.
  • The complaint alleged that Chemence’s glues were sold to trade customers and third-party retailers in packages with the deceptive and unqualified “Made in USA” label, with some including a picture of the U.S. flag, and that it misleadingly represented that its glues were made in the U.S. in its marketing materials. In reality, however, foreign materials accounted for more than 50% of the overall cost of manufacturing for its glues. The complaint further alleges that Chemence’s actions violated a 2016 consent order it entered with the FTC to resolve similar allegations.
  • Under the terms of the proposed consent order, among other things, Chemence is required to pay $1.2 million to the FTC, and it is prohibited from making claims about the U.S. origins of its products unless it can show that a product is assembled in the United States, or show  that the product is last substantially transformed and assembled in the United States. In addition, for every qualified Made in USA claim, Chemence must clearly and conspicuously disclose the extent to which the product contains foreign parts, ingredients, components, or processing. The order further requires Chemence to notify certain customers of the order and to provide compliance reports to the FTC.