Tuesday, May 21, 2024
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Kubota North America to Pay $2 Million Penalty for False ‘Made in USA’ Claims

The U.S. Federal Trade Commission (FTC) has announced that tractor manufacturer Kubota North America Corp will pay a $2 million civil penalty for inaccurately labeling some of its replacement parts as “Made in USA.” In addition to the fine, Kubota will be subject to restrictions on making deceptive claims, as outlined in a court order filed by the U.S. Justice Department on behalf of the FTC.

Samuel Levine, director of the Bureau of Consumer Protection, stated, “Today’s settlement includes the largest civil penalty assessed for violating the Made in USA Labeling Rule.”

According to the complaint, Kubota had falsely labeled thousands of replacement parts for its tractors and agricultural equipment as “Made In USA,” even though these parts were entirely manufactured overseas. The company had also shifted the production of certain parts from the United States to other countries but failed to update the labeling on these products to accurately reflect the change, as noted by the FTC.

Under the terms of the settlement, Kubota will be barred from making claims about the U.S. origin of any product unless it can demonstrate that the product’s final assembly or processing occurs in the United States. Additionally, Kubota is required to provide clear disclosures regarding the extent to which a product contains foreign components.

Kubota North America is a subsidiary of the Japanese agricultural machinery manufacturer Kubota Corp, which is headquartered in Osaka, Japan.

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Tuesday, May 21, 2024

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