Home improvement retailer Williams-Sonoma will have to pay nearly $3.2 million for violating the Federal Trade Commission’s “Made in the USA” order.
Williams-Sonoma was accused of advertising several products as “Made in the USA” when in fact they were made in other countries, including China. That violated a 2020 commission ruling requiring the San Francisco-based company to be truthful about whether its products were actually made in the United States.
The Federal Trade Commission said Friday that Williams-Sonoma has agreed to a settlement that includes a civil penalty of $3.175 million. According to the commission, this is the largest civil penalty ever in a Made in USA case.
“Williams-Sonoma’s deception misled consumers and harmed honest American businesses,” said Federal Trade Commission Chair Lina M. Hahn. “Today’s record civil penalty makes clear that firms committing Made in the USA fraud will not get a free pass.”
In addition to paying the fine, the seller of kitchenware and household items will be required to submit annual compliance reports, the FTC said. The settlement also imposes and strengthens a number of requirements regarding industrial claims that the company may bring.
Williams-Sonoma did not immediately respond to a request for comment Friday.
In 2020, the Federal Trade Commission sued Williams-Sonoma over allegations that the company falsely advertised several product lines as being wholly or almost entirely made in the United States under the Goldtouch, Rejuvenation, Pottery Barn Teen and Pottery Barn Kids brands. The company then agreed to comply with a Federal Trade Commission order requiring it to stop making such false claims.
The complaint, which resulted in a settlement this week, was filed by the Justice Department at the direction of the Federal Trade Commission. According to the documents, the Federal Trade Commission found that Williams-Sonoma advertised its PBTeen-branded mattress toppers as “made” in the U.S. from domestic and imported materials when they were manufactured in China.
The Federal Trade Commission said it then examined six other products that Williams-Sonoma marketed as “Made in the USA” and found those claims were also misleading, violating the 2020 order.