The U.S. Federal Trade Commission (FTC) has announced that tractor-maker Kubota North America will pay a $2 million civil penalty for falsely labeling some of its replacement parts as “Made in USA.” This penalty, part of a court order filed by the U.S. Justice Department on behalf of the FTC, is the largest civil penalty assessed for violating the Made in USA Labeling Rule to date.
In addition to the penalty, Kubota will be prohibited from making deceptive claims about the origin of its products. Samuel Levine, director of the Bureau of Consumer Protection, emphasized the significance of this settlement, stating, “Today’s settlement includes the largest civil penalty assessed for violating the Made in USA Labeling Rule.”
The complaint against Kubota alleges that the company labeled thousands of replacement parts for its tractors and other agricultural equipment as “Made in USA,” despite being manufactured entirely overseas. Furthermore, Kubota reportedly moved manufacturing for some parts from the United States to other countries but did not update the products’ labeling to reflect this change, according to the FTC.
As part of the agreement, Kubota will be prohibited from making U.S.-origin claims for any product unless it can demonstrate that the product’s final assembly or processing occurs in the United States. Additionally, the company must provide clear disclosures about the extent to which its products contain foreign parts.
Kubota North America operates as a unit of Kubota Corporation, a leading agricultural machinery manufacturer headquartered in Osaka, Japan. The FTC’s action underscores the importance of accurate labeling and transparent claims in the marketplace, particularly regarding the origin of products.
(Source: Federal Trade Commission | Market Screener | Japan Today)
