Manufacturers and Retailers Face Potential Liability Under California "Made in USA" Law

Manufacturers and retailers face a serious and growing risk of California class-action lawsuits when labeling their products as "Made in USA" following a recent court ruling. A California federal judge in Paz v. AG Adriano Goldschmied, Inc. et al. denied Nordstrom's motion to dismiss a putative class action based on California state labeling laws, finding that the Federal Trade Commission Act and the Textile Fiber Products Identification Act do not preempt California labeling laws governing use of the "Made in USA" label.

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