Williams Sonoma labeled Chinese-made merchandise American made; ordered to pay over $3M
The FTC and the Justice Department said Friday that Williams-Sonoma Inc. has agreed to a settlement, which includes a $3.175 million civil penalty.
Williams-Sonoma has been ordered to cough up more than $3 million in civil penalties after falsely claiming its products were made in the USA when they were actually made in China.
"Williams-Sonoma claimed its products were made in the United States even though they were made in China," FTC Chair Lina M. Khan said. "Williams-Sonoma’s deception misled consumers and harmed honest American businesses."
The Justice Department, together with the Federal Trade Commission (FTC), announced in a press release on Friday that the high-end kitchen store agreed to a $3,175,387 settlement.
"Today’s record-setting civil penalty makes clear that firms committing Made-in-USA fraud will not get a free pass," Khan said.
The Justice Department and the FTC alleged that William-Sonoma Inc., the parent company that owns Williams-Sonoma Home, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, PBTeen, West Elm and Rejuvenation, violated the terms of a 2020 FTC order requiring the retailer to tell the truth about whether the products it sells are Made in USA.
Along with paying the fine, the company was required to admit the truth about their alleged lies about their product's manufacturing.
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The order also required William-Sonoma Inc. to keep records of the product's manufacturing for future reporting to government agencies.
The latest infraction came after the FTC sued William-Sonoma in 2020.
The FTC said that William-Sonoma Inc. advertised several product lines as being all or almost all made in the U.S. under its Goldtouch, Rejuvenation, Pottery Barn Teen and Pottery Barn Kids brands.
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Williams-Sonoma Inc. did not immediately respond to Fox News Digital's request for comment.