Federal Trade Commission Received Documents July 18, 1995 B18354900224 LAUREN S. BAIN, M.P.H. Attomey at Law P.O. Box 1094 Tacoma, Washington 98401-1094 (206) 472-9888 July 14, 1995 Federal Trade Commission Office of the Secretary "Made in the USA" 6th St. and Pennsylvania Ave. N.W. Washington, D.C. 20580 Dear Secretary: Made in the USA is not an equivocal term; nor does its meaning devolve because of a global economy. Made in the USA means made by American labor: market-driven labor freely chosen and compensated. All product components are implied to be made in the US; otherwise, the proper term is "Assembled in the USA from *-*-* Parts." New Balance Athletic Shoe, Inc. acted in bad faith when the company emblazoned their product with "Made in USA" labels when the soles of their shoes, constituting 29% of the product, were made in China. The practice was a deceptive affront to conscientious consumers. I deliberately buy products made in the USA. I spend much more time and considerably more money than I would buying Chinese products. However, I believe in free-market economics and paid labor. The facts of Chinese factories manned by political prisoners and conscripted slave labor are known to Americans. I choose not to contribute to that system. The global economy does not make it impossible to buy American goods. It simply necessitates disclosure of the origin of the various components of a product. When a shoe is created 71% in the US and 29% in China, disclosure is not difficult. New Balance acted in bad faith when the company failed to disclose that the soles of their shoes labeled "Made in USA" were actually made in China. "Made in USA" is not a vapid advertising gimmick. It is a warranty. New Balance deployed the term fraudulently to impel conscientious consumers to purchase their products because of certain values and sentiments. New Balance wrongfully concealed a material element of an implied contract with the consumer. The company also violated an express warranty "Made in the USA" is an express warranty that the product is made by people who are not slaves, who are free to work where they choose, and who are paid for their work--within the borders of the United States of America. Several federal agencies, from the Department of Labor to the Immigration and Naturalization Service, are engaged in ensuring compliance with those provisions. "Made in USA" simply means made in the USA. I fervently hope the FTC will not consider confounding a simple term to enable it to fit a despicable and deceptive business practice. I own New Balance models 495 and 680, which I purchased exclusively because they were held out to be were American made. Had the Chinese origin of the soles been disclosed, I would not have purchased the shoes. I relied on the Made in USA warranty. I hope the models I purchased do not have Chinese soles. I have demanded assurances from New Balance, Inc. I am particularly disillusioned with the company's cavalier attitude toward their labeling. New Balance should be sanctioned for deceptive trade practices. The country of origin is a material term on a product label (or why would it be federally regulated?). Improper disclosure should not be exculpated by allowing a manufacturer to redefine the unequivocal term, "Made in the USA." Thank you for soliciting input on this crucial matter. Sincerely, Lauren S. Bain Attorney at Law P.O. Box 1094 Tacoma, WA 98401-1094 (206) 472-9888