The Department of Justice announced on Friday that Williams-Sonoma, a cookware company, has agreed to pay a $3.1 million civil penalty and cease making false and misleading claims about the origins of its products. This settlement comes in response to a federal court complaint.
The Department of Justice (DOJ) has accused the company of misleadingly labeling its products as “Made in the USA,” despite the fact that they were either fully imported or included a significant amount of imported content.
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The home products were available for purchase at various retail outlets, including Williams Sonoma Home, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, PBTeen, West Elm, and Rejuvenation.
“According to Brian M. Boynton, head of the DOJ Civil Division, Williams-Sonoma deceived customers by falsely advertising products as being made in the USA, when in reality, at least one of them was manufactured in China. Boynton expressed the commitment of the DOJ to collaborate with the FTC in order to put an end to deceptive marketing strategies like this.”
According to the Department of Justice (DOJ), Williams-Sonoma’s actions were deemed as violations of the FTC Act and the Made in USA Rule.
FTC Chair Lina M. Khan stated, “Williams-Sonoma falsely advertised their products as being made in the United States, when in fact they were manufactured in China. This deceptive practice not only misled consumers but also caused harm to honest American businesses. The significant civil penalty imposed today sends a clear message that companies engaging in Made-in-USA fraud will face consequences and will not be able to escape accountability.”
The company will be required to pay a civil penalty of $3,175,387 as part of the settlement. In addition, Williams-Sonoma is prohibited from making any misleading or unsubstantiated claims about the country of origin of its products. The settlement also includes obligations for the company to keep records and report on its compliance in order to ensure future adherence to the regulations.
