AB 890, as amended, Jones. False advertising.
Existing law makes it unlawful for any person, firm, corporation, or association to sell, or offer for sale, merchandise that advertises itself as being made or manufactured in the United States when any article, unit, or part of the merchandise has been entirely or substantially made, manufactured, or produced outside of the United States.
This bill would provide that a product that is made all or virtually all in the United States, within the meaning of a specified policy statement of the Federal Trade Commission, shall be deemed made within the United States, as specified. The bill would also state the intent of the Legislature in enacting the bill.
end deleteThis bill would eliminate the requirement that any article, unit, or part of the merchandise be substantially manufactured in the United States in order for the merchandise to advertise that it is made in the United States. The bill would deem any merchandise to be substantially made, manufactured, or produced within the United States if specified requirements are met, including that United States manufacturing costs constitute at least 90% of the total manufacturing costs for the merchandise and that the merchandise was last substantially transformed or assembled in the United States.
end insertVote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
It is the intent of the Legislature in enacting this
2measure to clarify existing state law with respect to federal law in
3order to improve this state’s ability to successfully compete with
4other states and nations for jobs, investments, and manufacturing.
Section 17533.7 of the Business and Professions
7Code is amended to
read:
(a) It is unlawful for any person, firm, corporation,
9or association to sell or offer for sale in thisbegin delete Stateend deletebegin insert stateend insert any
10merchandise on which merchandise or on its container there
11appears the words “Made in U.S.A.,” “Made in America,”
12“U.S.A.,” or similar words when the merchandisebegin delete or any article, has been entirely or substantially made,
13unit, or part thereof,end delete
14manufactured, or produced outside of the United States.
15(b) For purposes of subdivision (a), a product that is made all
16or virtually all in the United States, within the meaning of the
17Enforcement Policy Statement on U.S. Origin Claims issued by
18the Federal Trade Commission (62 Fed. Reg. 63756 (Dec. 2,
191997)), shall be deemed merchandise that has been entirely or
20substantially made, manufactured, or produced within the United
21States.
22(b) For purposes of this section, any merchandise has been
23substantially made, manufactured, or produced within the United
24States if it meets all of the following requirements:
25(1) United States manufacturing costs constitute at least 90
26percent of the total manufacturing costs for the merchandise.
27(2) At least 90 percent of the components, parts, articles, or
28units of the merchandise were manufactured in the United States.
29(3) No more than 10 percent of the total manufacturing costs
30for the merchandise were either incurred outside of the United
31States as a result of the unavailability of raw materials in the
32United States, or incurred as the costs of a component, part, article,
33or
unit of the merchandise imported into the United States as a
P3 1result of the unavailability of the component, part, article, or unit
2of the merchandise from a domestic manufacturer.
3(4) No more than 10 percent of the components, parts, articles,
4or units of the merchandise were manufactured outside of the
5United States as a result of the unavailability of raw materials in
6the United States, or the component, part, article, or unit of the
7merchandise was imported into the United States as a result of the
8unavailability of the component, part, article, or unit of the
9merchandise from a domestic manufacturer.
10(5) The merchandise was last substantially transformed or
11assembled in the United States.
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