Williams-Sonoma Hit with Record Fine For Misleading Customers

Williams-Sonoma has agreed to pay a record $3.175 million fine after being charged with false advertising by the Federal Trade Commission (FTC). This settlement is the largest all-time fine for a “Made in USA” enforcement case.

The case stemmed from allegations that the company falsely advertised its products that were manufactured in China as being made in the United. This falsehood was in direct violation of a 2020 FTC order that demands truthful disclosure of the origin of its products. The order was a response to earlier instances where Williams-Sonoma had been found guilty of similar deceptive practices.

“Williams-Sonoma claimed its products were made in the United States even though they were made in China,” said FTC Chair Lina M. Khan. “Williams-Sonoma’s deception misled consumers and harmed honest American businesses. Today’s record-setting civil penalty makes clear that firms committing Made-in-USA fraud will not get a free pass.”

The FTC first sued Williams-Sonoma in 2020 after it advertised several of its product lines, including those under the Goldtouch, Rejuvenation, Pottery Barn Teen, and Pottery Barn Kids brands, as being made in the U.S. even though many of those products were produced overseas.

In addition to the fine, the settlement imposes stringent compliance and reporting requirements on Williams-Sonoma. The company must now submit annual reports to the FTC to verify that it is adhering to truthful advertising standards about the origins of its products. The settlement also forces Williams-Sonoma to make clear and conspicuous disclosures about the extent to which its products contain foreign parts, ingredients, components, or processing. 

This case has drawn attention to the broader issue of “Made in USA” fraud, which the FTC has been keeping a closer eye on in recent years. The agency has stressed that deceptive marketing not only misleads consumers but also unfairly disadvantages American businesses that adhere to the guidelines and genuinely manufacture their products in the U.S.

Williams-Sonoma has not publicly responded to the settlement announcement but it's expected that this case will lead to increased diligence across the retail sector regarding accurate product origin claims.

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