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Bigelow is a U.S corporation that specializes in producing fine quality teas. In 2017, Bigelow started selling tea products with a logo on the back of its tea packaging stating “MANUFACTURED IN THE USA 100% AMERICAN FAMILY OWNED.”
In 2020, a class action suit was filed against Bigelow for false advertising, unfair competition, and violation of California’s Business and Professions Code section 17533.7. Section 17533.7 makes unlawful the use of “Made in the U.S.A”, “Made in America”, or similar words when the merchandise or article, unit or part thereof, has been entirely or substantially made, manufactured, or produced outside the United States.
In the suit, the plaintiffs alleged that Bigelow’s tea leaves were grown and processed in foreign countries like China, Sri Lanka, and India. In response to the plaintiffs’ allegations, Bigelow presented several arguments, including that it blends and packages the tea into tea bag products in the United States. Furthermore, Bigelow asserted that the term “manufacture” pertained specifically to the assembled tea bags rather than the loose tea leaves.
In determining that Bigelow’s “MANUFACTURED IN THE USA” claim was literally false, the court relied on the precedent set in Colgan v. Leatherman Tool Group, Inc. (2006) 135 Cal.App.4th 663, 680, in which the court held that “A Made in America” claim is deemed false if a substantial or significant portion of the component partsof the product are manufactured abroad.
Thus, in Bigelow, the court concluded that although tea bags and loose tea leaves are distinct products, consumers buy tea bags specifically for the tea they contain. The court held that the tea is considered the core component of the tea bag. Consequently, the court found that Bigelow’s claim of “MANUFACTURED IN THE USA” was deceptive, as the tea leaves used in the tea bags did not originate from the United States.
The case is a reminder of the need for care in advertising your company’s products. If you plan to conduct or are conducting business in California, it is important to understand the state’s specific legal requirements. California often imposes strict regulations regarding product labeling and consumer protection standards. Making a mistake can land you in a lawsuit. It is thus recommended that before you advertise your product, you seek professional advice to assure adherence to all applicable laws.
Aisha O. Otori is an associate in the Intellectual Property department of the firm and works in the Fresno and Los Angeles offices. Aisha, who is licensed to practice before the USPTO, represents clients in patent prosecution and patent litigation, trademark, tradename, trade dress and copyright applications and enforcement before the Trademark Trial and Appeal Board (“TTAB”) as well as commercial and unfair competition litigation in state and federal courts. She received her undergraduate (B.S. Chemical Engineering) and law degrees from Tulane University and an L.L.M. from University of Illinois Chicago School of Law in intellectual property and international business and trade law (with a Certificate in International Corporate & Finance Law) as well as a law degree from Nigerian Law School (Abuja Campus). She is licensed in California, Illinois, and Nigeria. Aisha is a member of the Fresno County Bar Association, Association of Business Trial Lawyers (“ABTL”), and the Los Angeles Intellectual Property Law Association (“LAIPLA”).
© Coleman & Horowitt, LLP, 2024
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