The District Court for the Southern District of California recently ruled that California’s stringent “Made in the USA” labeling law does not run afoul of the Dormant Commerce Clause of the US Constitution. Following an earlier decision, the court also ruled that the law is not preempted by federal law. Order, Louise Clark v. Citizens of Humanity, LLC, Macy’s, Inc. et al., Case No. 14-cv-1404 JLS (April 8, 2015) (S.D. Cal.).
The plaintiffs in Clark alleged that the defendants’ jeans were falsely promoted as “Made in the USA” when they actually contained components—such as fabric, thread, buttons, and rivets—manufactured abroad. Defendants moved to dismiss on the grounds that the laws were preempted by the (more lenient) Federal Trade Commission Act and Textile Fiber Products Identification Act but also that the law violates the dormant commerce clause of the Constitution. The Court denied the motion, noting in response to both arguments that suppliers could use “qualified” labels (e.g. “Made in the USA of imported fabric”).
Our fellow bloggers at Consumer Products Law Blog, reported on the “Made in USA” matter in its post, California’s Made In USA standard survives another test in court.