SB 633, as amended, Hill. Consumer protection: “Made in U.S.A.” label.
Existing law prohibits the sale or offering of sale in the state of any merchandise on which merchandise or on its container appears the words, “Made in U.S.A.,” “Made in America,” “U.S.A.,” or similar words when the merchandise or any article, unit, or part thereof, has been entirely or substantially made, manufactured, or produced outside of the United States.
This bill would exempt from the prohibition merchandise made, manufactured, or produced in the United States if either the merchandise hasbegin delete an article, unit, or part that doesend deletebegin insert one or more articles, units, or parts from outside the United States if they end insertbegin insertdoend insert
not constitute more than 5% of the final product or the manufacturer makes a specified showingbegin insert regarding the articles, units, or parts from outside the United Statesend insert andbegin delete the article, unit, or part doesend deletebegin insert they doend insert not constitute more than 10% of the final product. The bill would also exempt merchandise sold for resale to consumers outside of the state.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 17533.7 of the Business and Professions
2Code is amended to read:
(a) It is unlawful for any person, firm,begin delete corporationend delete
4begin insert corporation,end insert or association to sell or offer for sale in this state any
5merchandise on which merchandise or on its container there
6appears the words “Made in U.S.A.,” “Made in America,”
7“U.S.A.,” or similar words if the merchandise or any article, unit,
8or part thereof, has been entirely or substantially made,
9manufactured, or produced outside of the United States.
10(b) This section shall not apply to merchandise made,
11manufactured,
or produced in the United States that hasbegin delete an article, begin insert
one or more articles, units, or partsend insert from outside of
12unit, or partend delete
13the United States, ifbegin delete the article, unit, or partend deletebegin insert all of the articles,
14units, or partsend insert of the merchandise obtained from outside the United
15Statesbegin delete constitutesend deletebegin insert constituteend insert not more than 5 percent of the final
16manufactured product.
17(c) (1) This section shall not apply to merchandise made,
18manufactured, or produced in the United States that hasbegin delete an article, begin insert
one or more articles, units, or partsend insert from outside of
19unit, or partend delete
20the United States, if both of the following apply:
21(A) The manufacturer of the merchandise shows that it can
22neither produce the article, unit, or part within the United States
23nor obtain the article, unit, or part of the merchandise from a
24domestic source.
25(B) begin deleteThe article, unit, or part end deletebegin insertAll of the articles, units, or parts end insert
26 of the merchandise obtained from outside the United States
27begin delete constitutesend deletebegin insert
constituteend insert not more than 10 percent of the final
28manufactured product.
29(2) The determination that the article, unit, or part of the
30merchandise cannot be made, manufactured, produced, or obtained
31within the United States from a domestic source shall not be based
32on the cost of the article, unit, or part.
P3 1(d) This section shall not apply to merchandise sold for resale
2to consumers outside of California.
3(e) For purposes of this section, goods sold or offered for sale
4outside of California shall not be deemed mislabeled if the label
5conforms to the law of the forum state or country within which
6they are sold or offered for sale.
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