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The federal government is a strict editor of Shinola's marketing language, a two-page Federal Trade Commission letter reminds the Detroit company.
Shinola can't say "Where American is made" in ads and other materials, write two lawyers at the regulatory agency, JC Reindl of the Free Press reports:
The FTC letter -- posted on the commission's website -- says that during its review of Shinola and Filson products, its staff raised concerns about the extent to which the companies' products are "made" or "built" in the U.S. Under FTC regulations, nearly 100% of a product's parts must be made in the U.S. for a "Made in USA" or "Built in USA" label. Companies that make false claims can be fined. . . .
In the letter to Shinola's parent company -- Dallas-based Bedrock Manufacturing Co. -- Federal Trade Commission lawyers said they will not recommend enforcement actions in light of recent corrective moves taken by Shinola and a sister clothing company, Filson.
The corrective actions included transitioning away from Shinola's "Where American is Made" slogan and redesigning the back of Shinola watches to add the phrase "Swiss and Imported Parts" just below the existing slogan "Built in Detroit." The company also is editing its advertising claims and adding hangtags to its watches, bicycles and other product to alert consumers about the significant foreign-made content. . . .
Because of the corrective actions, "staff has decided not to recommend enforcement at this time," says the letter, formally closing the agency's investigation.
"However, certain materials presented to us . . . raise concerns that Bedrock may make deceptive U.S.-origin claims in the future," the letter said. "Therefore, we will continue to monitor the company's advertising closely."
The FTC attorneys conclude: "This letter should not be construed as a determination that there was no violation. . . . The Commission reserves the right to take such further action as the public interest may require."
Reindl gets Shinola's reaction:
The company said Friday that it will keep "Built in Detroit," but add the new phrase "Swiss and imported parts" just below it on watches. . . .
Tom Kartsotis, founder of Bedrock Manufacturing and Shinola, said they have always tried to be transparent about the origins of products, but conceded "some flaws in our communication."
In his four-paragraph statement, posted by the Freep, the Shinola executive complains about "the inconsistency of the policies and laws, as well as the subjective nature of some of the process."
Many of the components and raw materials are simply not available in the US, and because of that we are unable to meet the almost unattainable “Made In USA” standards created by the government.
We found it confusing that a car, for example, isn’t held to the same standard as a watch.
-- Alan Stamm
