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Advertising Law Updates

| 1 minute read
Reposted from GALA

Court Allows "Made in USA" Lawsuit Against Reynolds to Continue

Reynolds Consumer Products promotes its aluminum foil as “Made in USA.”  In a lawsuit brought in the Southern District of New York, a consumer sued for false advertising, alleging that the claim is false.  Reynolds moved to dismiss, and the court just denied the motion, allowing the case to proceed.  

The plaintiff sued under New York law, alleging that Reynolds' "FOIL MADE IN U.S.A" claim is false and misleading because the raw materials that are used to make the aluminum foil are sourced from outside the United States.  Apparently, aluminum foil is made from bauxite, and bauxite hasn’t been mined in the U.S. since the 1980s. 

In order to state a claim for false advertising in New York, the plaintiff must show that the advertising is “likely to mislead a reasonable consumer acting reasonably under the circumstances.”  The plaintiff must also show that the plaintiff suffered an injury as a result of the deceptive act or practice. 

If the raw materials were actually sourced from overseas, it should come as no surprise to Reynolds that a claim like this would be brought.  Although it doesn't provide a private right of action, the FTC's Made in USA Labeling Rule prohibits the labeling of any product as having been made in the United States “unless the final assembly or processing of the product occurs in the United States, all significant processing that goes into the product occurs in the United States, and all or virtually all ingredients or components of the product are made and sourced in the United States.” 

Interestingly, though, in its motion to dismiss, Reynolds doesn't really argue that the raw materials weren't imported.  Rather, Reynolds argued that the plaintiff hadn't sufficiently alleged an injury.  The court didn't buy the argument, though.  The court wrote, “Plaintiff sufficiently specified which product she purchased (Reynolds Wrap aluminum foil), detailed the alleged misrepresentation (the label ”FOIL MAD IN U.S.A. and the three stars), where and when she made the purchase (at Target, C-Town, and BJ's stores in New York during the statutory period), and that she paid a premium price (approximately no less than $4.999 per 75 square feet, higher than similar products represented in a non-misleading way."  

Washington v. Reynolds Consumer Products, 2025 WL 673615 (S.D.N.Y. 2025).

Tags

made in usa, advertising