Unions are waiting to see if the California Supreme Court will severely limit consumers’ ability to enforce violations of false advertising statutes such as the “Made in USA” labeling statute, which protects a consumer’s choice to support American-made products. The case could also impact other false advertising cases under the California Unfair Competition Law. (See related article on page 5.)
Berman DeValerio filed an amicus brief on behalf of the California Teamsters Public Affairs Council (CTPAC), the California Nurses Association (CNA) and the Service Employees International Union (SEIU). The unions are urging the high court to overturn an appellate court decision that undermines the integrity of the “Made in USA” label.
California’s “Made in USA” consumer protection statute guards against false advertising related to a product’s country of origin. The defendants in the pending case – the lock manufacturer Kwikset Corporation and its parent, Black & Decker Corp. – assembled key components of its locks in Mexico, but continued to label the locks as “Made in U.S.A.,” “All American Made” or “All American Made & Proud Of It.” For example, Kwikset assembled the central latch mechanism, the “heart” of the locks, in Mexico, where over 12% of its workforce was located. Kwikset had even shifted production from its Anaheim, Calif., plant to Mexico, eventually closing the California plant altogether.
Over a decade ago, an individual consumer who purchased a Kwikset lock sued and won his case in the lower court. The trial court ruled that Kwikset violated California’s “Made in USA” statute, and other false advertising statutes, with respect to 25 of its product lines.
Just last year, however, an appellate court dismissed the lawsuit, finding that even though the plaintiff purchased Kwikset’s falsely labeled products, he did not have standing to sue.
The appellate court’s decision effectively closes the courtroom door on consumers misled by false “Made in USA” labels. The case is now before the California Supreme Court.
“Obviously, this case is of vital interest to labor unions in the United States, and we were happy to help them express their views in an amicus brief,” said Kevin Shelley, special counsel to Berman DeValerio and formerly California Secretary of State.
Unions such as the California Teamsters, CNA and SEIU rely on accurate “Made in USA” labeling when they undertake campaigns to encourage consumers to buy American-made products.
“Without adequate enforcement of the ‘Made in USA’ statute, companies like Kwikset Corporation and Black & Decker Corporation will be able to mislead consumers and distort competition without fear of liability – this is a result that our members cannot accept,” the amicus brief reads.
*In August 2017, our firm name changed to Berman Tabacco. Case references and content published before that date may refer to the firm under our prior name, Berman DeValerio.