Sheila Millar and Jean-Cyril Walker Quoted in The Fashion Law Article, "As Fashion Contemplates Reshoring, a Look at What ‘Made in USA' Means"
Keller and Heckman Partners Sheila Millar and Jean-Cyril Walker were quoted in The Fashion Law article, “As Fashion Contemplates Reshoring, a Look at What ‘Made in USA’ Means.” The article discusses how businesses, to maximize efficiency, have concentrated their operations on suppliers in a few countries.
In April, a survey conducted by accounting firm Ernst and Young found that as many as 83 percent of multinational executives were contemplating “reshoring” – or bringing manufacturing back to their home turf after outsourcing it to other countries due to manufacturing and shipping disruptions caused by COVID-19. The potential for a surge in reshoring efforts in the U.S. would prove striking for fashion industry entities. A shift back to the U.S would bring an increased emphasis on the ins-and-outs of “Made in USA” labeling, an area that is expected to be subject to increased attention and enforcement.
In December, the Federal Trade Commission (FTC) handed down a $1.2 million judgment against a Georgia-based adhesive company for selling glue products with “Made in the USA” claims and imagery of the American flag, even though foreign materials accounted for upwards of 80 percent of the materials costs. Ms. Millar and Mr. Walker noted that the steep fine shows that FTC knows that “many customers who want to support domestic industries look for ‘American Made’ claims or symbols,” and that companies that run afoul of labeling rules will face “significant consequences,” as the FTC continues to pursue “Made in USA” claims aggressively. They further noted that “businesses wishing to advertise their products as American made would be well advised to familiarize themselves with the FTC’s Enforcement Policy Statement on U.S. Origin Claims guidance to avoid their ‘Made in USA’ claims from coming unglued.”
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