Williams-Sonoma must pay almost $3.2 million for violating FTC’s ‘Made in USA’ order
NEW YORK — Home products retailer Williams-Sonoma will have to pay nearly $3.2 million for violating a Federal Trade Commission “Made in USA” order.
Williams-Sonoma was accused of advertising several products as “Made in USA,” when in fact they were manufactured in other countries, including China. That violated a 2020 commission order that required the San Francisco-based company to be honest about whether its products were actually made in the U.S.
The FTC said Friday that Williams-Sonoma has agreed to a settlement, which includes a civil penalty of $3.175 million. That is the largest civil penalty ever imposed in a Made in USA case, the committee said.
“Williams-Sonoma’s deception has misled consumers and harmed honest American businesses,” said FTC Chairman Lina M. Khan. “Today’s record-breaking civil penalty makes it clear that companies that commit Made-in-USA fraud will not get a free pass.”
In addition to paying the fine, the seller of cookware and home furnishings will be required to file annual compliance reports, the FTC said. The settlement also imposes a number of requirements regarding manufacturing claims the company can make.
Williams-Sonoma did not immediately respond to a request for comment Friday.
In 2020, the FTC sued Williams-Sonoma, alleging that the company falsely advertised several product lines as being entirely or substantially all made in the U.S. under the Goldtouch, Rejuvenation, Pottery Barn Teen and Pottery Barn Kids brands. The company subsequently complied with an FTC order that it stop making such misleading claims.
The complaint that led to this week’s settlement was filed by the Department of Justice upon referral from the FTC. According to the filing, the FTC found that Williams-Sonoma advertised its PBTeen brand mattress protectors as “manufactured” in the U.S. from domestic and imported materials – even though they were made in China.
The FTC said it then investigated six other products that Williams-Sonoma marketed as “Made in USA” and found those claims were also misleading and violated the 2020 order.