Williams-Sonoma Hit With Record $3.17M Fine for Deceptive 'Made in USA' Claims

Home retailer Williams-Sonoma Inc. has agreed to pay a record $3.17 million civil penalty to settle charges that it repeatedly violated a 2020 Federal Trade Commission order requiring truthful "Made in USA" product claims.

The FTC alleged that Williams-Sonoma continued marketing certain products as American-made even after being warned that the claims were deceptive because the items were largely imported from countries like China.

It represents the largest fine ever imposed for violations related to country-of-origin labels and false U.S.-origin claims about product manufacturing.

"Williams-Sonoma claimed its products were made in the United States even though they were made in China," said FTC Chair Lina M. Khan. "Williams-Sonoma's deception misled consumers and harmed honest American businesses."

The FTC first took action against Williams-Sonoma in 2020, charging that the company falsely advertised bedding, furniture and other home goods under brands like Pottery Barn as being American-made when significant manufacturing occurred overseas.

As part of a settlement, Williams-Sonoma agreed to an order prohibiting further deceptive U.S.-origin claims and requiring compliance with FTC standards for making qualified or unqualified "Made in USA" product marketing claims.

However, the FTC alleges Williams-Sonoma violated that 2020 order by continuing to mislabel products like mattress pads as "Crafted in America" when they were predominantly made in China.

The $3.175 million penalty resolves the FTC's charges of blatant order violations. Williams-Sonoma is also now subject to stringent new compliance measures, including:

• A prohibition on unqualified "Made in USA" claims unless final assembly and virtually all manufacturing occurs domestically
• A requirement to clearly disclose the extent of foreign materials or processing for any qualified "Made in USA" claims
• Ensuring any "Assembled in USA" claims meet FTC standards about being last substantially transformed and primarily assembled in America

"Today's record-setting civil penalty makes clear that firms committing Made-in-USA fraud will not get a free pass," Khan said.

The FTC has made a priority of cracking down on deceptive marketing that misleads consumers into thinking they are buying American-made goods over cheaper imported products. New FTC rules also allow for civil penalties for future violations.

Williams-Sonoma did not admit to liability as part of the settlement. A company spokesperson said it is committed to ensuring complete compliance with FTC regulations going forward.

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