New Balance sidesteps FTC ad rules

[Contrary1]

Shoemaker in landmark case sets its own ‘Made in America’ standards

When is a product “Made in America”? For Boston-based shoemaker New Balance, the answer seems to be, “When we say it is.”

Fifteen years after a contentious legal battle set off a national debate on what it means to be Made in the USA, New Balance continues to sidestep the federal “all or virtually all” standard that governs the advertising claim. On its Web site and in shoe boxes, the company insists that as long as 70 percent of a shoe’s value comes from the United States, that’s good enough to be called Made in America.

<snip>

“If the rule is that it must be all or substantially all, you can’t ignore the rule by a disclosure that 70 percent of it is made in the United States,” said Robert Pitofsky, who was FTC chairman in the mid-1990s when the commission exhaustively studied the issue and ultimately decided against weakening the standard. Pitofsky is now a Washington attorney and Georgetown law school professor.

New Balance executives believe the company is following FTC guidelines.

“We’re not trying to deceive anybody,” said Edward Haddad, vice president of intellectual property with New Balance. “The shoe is made or assembled in the United States by American workers. That’s all we’re saying, and we’re saying it very clearly.”

More: http://www.msnbc.msn.com/id/36476797/ns/business-us_business/

[flvegan]

1. I hate this.

I bought vegan New Balance sneakers and was happy they were made (according to them) in the US.

Matter of fact, I'm wearing them now and this pisses me off.

[realisticphish]

2. that sucks

i love my New Balances. Beat the shit out of Nikes. I'll still wear them, because I like them, but this does seem disingenuous. Not dishonest, per se, but using that kind of technicality is rather scummy.

Point, though. How does the FTC define "all or virtually all?" I'm honestly curious about this, because it seems like the kind of detail that would be incredibly important to have defined. I would not, personally, place that number at 70; more likely at 90ish

[Odin2005]

10. Mine are 5 years old and have aged very well.

Nike shit would have fallen apart.

[HopeHoops]

3. The main problem is that there are NO US manufacturers of the rubber soles.

They seriously considered starting a plant but couldn't justify the cost without selling to other companies to make up the volume. No scenario worked from a business plan perspective. That was when the battle began over "Made in USA". Some of the shoes are simply not at all US made and clearly state that. It is a tricky question. Still, the New Balance shoes labeled "Made in USA" beat the hell out of ANYTHING made elsewhere, including their own "Made in China" shoes.

Saucony used to make excellent shoes in the US as well, but they went completely "Made in China" about the same time.

[uncle ray]

4. 70% made in the USA is better than 0%

[ashling]

7. Exactly.

As long as they are not being deceptive.

[Brickbat]

5. Remember kids, this wouldn't be a problem if Americans WANTED to make shoes -- they don't!

/Roger and Me.

[OmmmSweetOmmm]

6. At least they're making most in the US in some shape or form. Along with textiles, the vast

majority of these manufacturers have ditched the US entirely.

[Quantess]

8. Wow! A full 70% of their shoes are Made in USA?

That's almost unheard of these days. If I were the CEO of New Balance, I'd go around bragging about it, too. Yes, I'm a cynic.

[Odin2005]

9. Fuck, I'm a loyal New Balance wearer and this pisses me off!

:grr: