Products that carry the “Made in USA” slogan have a distinct marketing advantage, particularly among a big segment of the population that believes in buying American-made products. So it is no wonder that many companies like to wrap themselves in the flag as part of their sales strategy.

A regular reader, David B., recently brought this commercial to our attention from Stihl, a leading maker of portable outdoor power tools.

Did you catch that virtually unreadable fine print footnote on the screen for three seconds at the end of commercial?

*MOUSE PRINT:

“A majority of Stihl products are made in America of U.S. and foreign made materials.”

That statement probably doesn’t square with the net impression that the commercial conveys to the average viewer. The orally unqualified “Made in America” claim drowns out the tiny disclaimer that most people probably couldn’t read. Taken literally, the fine print could mean that as few as 51% of their products are actually made in the USA.

In the last year, the Federal Trade Commission has gotten more active in investigating “made in USA” claims, publicizing its advertising guidelines, issuing a new “Made in USA” labeling rule, and settling a number of cases. Key in these settlements is the requirement that the company must not make any representation, expressly or by implication, that a product or service is “Made in the United States” unless:

A. … all or virtually all ingredients or components of the product are made and sourced in the United States; or

B. A Clear and Conspicuous qualification appears immediately adjacent to the representation that accurately conveys the extent to which the product contains foreign parts, ingredients or components, and/or processing; …

In our opinion, Stihl’s fine print limitation on their “Made in America” claim is not clear and conspicuous and could subject them to FTC scrutiny. We asked the company about that, what percentage of their products are made here, what percentage contain foreign parts, and whether the company plans to modify their advertisement. The company responded in relevant part:

Over 75% of STIHL outdoor power equipment sold in the United States is manufactured in the United States in our Virginia Beach facility of foreign and domestic components.
…
STIHL Inc. firmly believes that its advertising of the significant manufacturing processes occurring in Virginia Beach is in line with FTC guidance. STIHL Inc. does not make an unqualified “Made in America” claim, and consistently and clearly disclaims that qualifying equipment is made of U.S. and foreign components. The specific disclaimer at issue is clearly visible on the screen the entire time the “made in America” claim is being made (spoken or written), and is sufficient to qualify the claim, per FTC guidelines.