Williams-Sonoma to Pay $3.2 Million To Settle Claims of Misleading 'Made in USA' Labels

By Ben Glickman

Williams-Sonoma has agreed to pay more than $3 million to settle claims that it improperly labeled its products as made in the U.S.

The settlement, announced Friday by the Justice Department and the Federal Trade Commission, represents the largest ever civil penalty levied under regulators' Made in USA rule, officials said. The labeling rule by the FTC went into effect in 2021 and gives companies penalties if they improperly label products' origins.

Officials alleged that Williams-Sonoma listed products sold by various subsidiaries as being "Made in USA" despite being imported from China and other countries. As part of the settlement, the Justice Department said the company had admitted the validity of the complaint's allegations.

In addition to imposing the $3.18 million civil penalty, the settlement restricts Williams-Sonoma from making unqualified claims about products being of U.S. origin without extensive evidence and requires the company to clearly note when products contain foreign parts or were processed abroad.

Officials said the misleading or false labels were on product lines sold under the company's Pottery Barn, Pottery Barn Kids, Pottery Barn Teen and West Elm brands, among others.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

April 26, 2024 12:22 ET (16:22 GMT)

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