Kubota Violates Made in USA Labeling Rule
The Federal Trade Commission (FTC) announced on Friday that it has fined Kubota, one of the world’s largest tractor manufacturing companies, $2 million for mislabeling certain replacement parts as “Made in the USA.” According to Samuel Levine, director of the FTC’s Bureau of Consumer Protection, this settlement represents the highest civil penalty ever imposed for violating the Made in USA Labeling Rule.
Violation of the 2021 Rule
The Dallas-based Kubota North America Corporation was found to have violated the 2021 rule by incorrectly labeling thousands of products that were either wholly imported or made with significant imported materials as U.S.-made. This violation has been ongoing since at least 2021, as stated in a court order. Furthermore, the complaint reveals that even after production had been shifted overseas, package designs featuring “Made in USA” labels remained unchanged.
Restrictions and Background
As part of the settlement, Kubota is now prohibited from claiming U.S.-origin manufacturing for its products unless it can provide evidence of significant processing taking place in the United States. It is worth noting that Kubota, which was established in Japan during the 19th century, has since become a global manufacturer of tractors, construction equipment, and various other machinery.
This recent fine imposed on Kubota surpasses a previous record held by Resident Home LLC, a company that owns several mattress brands. In that case, the company and its owner, Ran Reske, paid $753,000 to settle FTC charges related to the labeling of imported DreamCloud mattresses as being made with domestic materials.