Federal Trade Commission Documents Received Apr. 26, 1996 P894219 B18354900145 CONGRESS of the UNITED STATES 145 House of Representatives Washington, DC 20515-4207 April 3, 1996 Janet Steiger, Chair Federal Trade Commission Pennsylvania Avenue & 6th Street, NW Washington, DC 20580 Dear Chairwoman Steiger: I recently heard from several of my constituents at Centerville Lumber Company, regarding "Made in the USA" restrictions. I have enclosed copies of their letters to me for your information. In order to ensure that my constituents receive the most timely response, please respond directly to them and forward a copy of your reply to my Washington office. Thank you for your attention to the concerns of my constituents. Sincerely, Ed Bryant, M.C. enclosure EGB:kdg CENTERVILLE LUMBER CO. 2962 Highway 100-Centerville, TN 37033-615/670-5870 FAX 615/1670-5170 March 12,1996 FAX #202-225-2989 The Honorable Ed Bryant United States of Representatives 1516 Longworth House Office Building Washington, D.C. 20510 Dear Senator Federal Trade Commission regulations require that products labeled "Made in the USA" "all or virtually all" domestically produced. These regulations keep jobs in the USA and assure consumers that if an item says "Made in USA", it means what it says. The FTC is currently investigating whether the current standard should be modified to allow "Made in the USA" claims for products that are not all or virtually all made in the USA. If this happens, many consumers will be deceived. In connection with this investigation, the FTC requested comments from interested parties. Over 100 individuals took the time to reply to the FTC, often sending handwritten comments. The overwhelming majority strongly supported retaining the current standard. Many writers expressed their desire to know that they were purchasing products produced by U.S. workers instead of underpaid foreign workers. Some companies have moved their production to foreign countries (taking U.S. jobs with them), but perform some processing and assembly in the U.S. These manufacturers want to be able to claim that their products are, in fact, "Made in the USA". Many of these companies claim the lower standard for USA claims will create more jobs in the U.S.A., but this is not true: * If a company can import foreign components products by cheap labor (sometimes in violation of human rights) and be able to make a "Made in USA" claim, they will have a cost advantage over the domestic producer. Consequently, domestic manufacturers (whose "Made in USA" label will no longer mean much) will be forced to import component parts to remain competitive, costing U.S. jobs. * Some companies that now import foreign components, and thus have exported U.S. jobs, may qualify for a "Made in USA" claim under the lower standard, encouraging more foreign sourcing. Today, any company that uses imported components already has the right to make qualified "Made in USA" claims revealing the use of foreign components. I urge the Congress to stand up for domestic jobs and domestic industries by aggressively supporting the current "Made in U.S.A." standard. As the FTC proceedings continue, and as Congress considers the issue, I hope that you will join us in this critical effort. Sincerely, Centerville Lumber CO. Howard A. Vaughn, Jr. President CENTERVILLE LUMBER CO. 2962 Highway 100-Centerville, TN 37033-615/670-5870 FAX 615/1670-5170 March 12,1996 FAX #202-225-2989 The Honorable Ed Bryant United States of Representatives 1516 Longworth House Office Building Washington, D.C. 20510 Dear Senator Federal Trade Commission regulations require that products labeled "Made in the USA" "all or virtually all" domestically produced. These regulations keep jobs in the USA and assure consumers that if an item says "Made in USA", it means what it says. The FTC is currently investigating whether the current standard should be modified to allow "Made in the USA" claims for products that are not all or virtually all made in the USA. If this happens, many consumers will be deceived. In connection with this investigation, the FTC requested comments from interested parties. Over 100 individuals took the time to reply to the FTC, often sending handwritten comments. The overwhelming majority strongly supported retaining the current standard. Many writers expressed their desire to know that they were purchasing products produced by U.S. workers instead of underpaid foreign workers. Some companies have moved their production to foreign countries (taking U.S. jobs with them), but perform some processing and assembly in the U.S. These manufacturers want to be able to claim that their products are, in fact, "Made in the USA". Many of these companies claim the lower standard for USA claims will create more jobs in the U.S.A., but this is not true: * If a company can import foreign components products by cheap labor (sometimes in violation of human rights) and be able to make a "Made in USA" claim, they will have a cost advantage over the domestic producer. Consequently, domestic manufacturers (whose "Made in USA" label will no longer mean much) will be forced to import component parts to remain competitive, costing U.S. jobs. * Some companies that now import foreign components, and thus have exported U.S. jobs, may qualify for a "Made in USA" claim under the lower standard, encouraging more foreign sourcing. Today, any company that uses imported components already has the right to make qualified "Made in USA" claims revealing the use of foreign components. I urge the Congress to stand up for domestic jobs and domestic industries by aggressively supporting the current "Made in U.S.A." standard. As the FTC proceedings continue, and as Congress considers the issue, I hope that you will join us in this critical effort. Sincerely, Centerville Lumber CO. Ronald H. Miller Vice President CENTERVILLE LUMBER CO. 2962 Highway 100-Centerville, TN 37033-615/670-5870 FAX 615/1670-5170 March 12,1996 FAX #202-225-2989 The Honorable Ed Bryant United States of Representatives 1516 Longworth House Office Building Washington, D.C. 20510 Dear Senator Federal Trade Commission regulations require that products labeled "Made in the USA" "all or virtually all" domestically produced. These regulations keep jobs in the USA and assure consumers that if an item says "Made in USA", it means what it says. The FTC is currently investigating whether the current standard should be modified to allow "Made in the USA" claims for products that are not all or virtually all made in the USA. If this happens, many consumers will be deceived. In connection with this investigation, the FTC requested comments from interested parties. Over 100 individuals took the time to reply to the FTC, often sending handwritten comments. The overwhelming majority strongly supported retaining the current standard. Many writers expressed their desire to know that they were purchasing products produced by U.S. workers instead of underpaid foreign workers. Some companies have moved their production to foreign countries (taking U.S. jobs with them), but perform some processing and assembly in the U.S. These manufacturers want to be able to claim that their products are, in fact, "Made in the USA". Many of these companies claim the lower standard for USA claims will create more jobs in the U.S.A., but this is not true: * If a company can import foreign components products by cheap labor (sometimes in violation of human rights) and be able to make a "Made in USA" claim, they will have a cost advantage over the domestic producer. Consequently, domestic manufacturers (whose "Made in USA" label will no longer mean much) will be forced to import component parts to remain competitive, costing U.S. jobs. * Some companies that now import foreign components, and thus have exported U.S. jobs, may qualify for a "Made in USA" claim under the lower standard, encouraging more foreign sourcing. Today, any company that uses imported components already has the right to make qualified "Made in USA" claims revealing the use of foreign components. I urge the Congress to stand up for domestic jobs and domestic industries by aggressively supporting the current "Made in U.S.A." standard. As the FTC proceedings continue, and as Congress considers the issue, I hope that you will join us in this critical effort. Sincerely, Centerville Lumber CO. G. Farlin Caufiled Executive President