[Congressional Record Volume 143, Number 120 (Thursday, September 11, 1997)]
[Senate]
[Page S9219]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




SENATE CONCURRENT RESOLUTION 52--RELATIVE TO FTC RULING ON MADE IN USA 
                                LABELING

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  Mr. HOLLINGS (for himself and Mr. Abraham) submitted the following 
concurrent resolution; which was referred to the Committee on Commerce, 
Science, and Transportation:

                            S. Con. Res. 52

       Whereas for the past several decades the ``Made in USA'' 
     label has defined a product as having all or virtually all of 
     its parts and labor originating in the United States;
       Whereas the people of the United States depend upon the 
     integrity of this label when purchasing products;
       Whereas the label projects a sense of pride for American 
     workmanship and value;
       Whereas the Federal Trade Commission has proposed 
     regulations to lower this standard to allow substantial 
     amounts of a product to be of foreign origin;
       Whereas lowering this standard will be a misrepresentation 
     to consumers in the United States who presently believe 
     products bearing the ``Made in USA'' label were all or 
     virtually all made in the United States;
       Whereas consumers in the United States are entitled to 
     purchase products with the understanding that the labels on 
     these products reflect consistent definitions; and
       Whereas the Federal Trade Commission is responsible for 
     safeguarding the consumer from unfair, deceptive, and 
     fraudulent practices: Now, therefore be it
       Resolved by the Senate (the House of Representatives 
     concurring), That the Congress--
       (1) maintains that the standard for the ``Made in USA'' 
     label should continue to be that a product was all or 
     virtually all made in the United States; and
       (2) urges the Federal Trade Commission to refrain from 
     lowering this standard at the expense of consumers and jobs 
     in the United States.

  Mr. HOLLINGS. Mr. President, today, along with Senator Spencer 
Abraham of Michigan, I am pleased to submit a resolution opposing a 
proposal by the Federal Trade Commission to allow the ``Made in the 
USA'' label to be applied by products that are not made in the United 
States. If the FTC's proposal were to take effect, it would result in 
misleading and inaccurate claims and could ultimately cause widespread 
deception and consumer confusion. Moreover, the FTC's proposal would 
encourage manufacturers to send U.S. jobs abroad.
  The FTC's recent proposal would reverse 50 years of precedent by the 
use of the ``Made in USA'' label even for products with as much as 25 
percent or more, foreign labor or materials if they were substantially 
transformed in the United States. In some instances this could result 
in a product being labeled as ``Made in the USA'', even if all of the 
product's materials or components were made abroad.
  Under current rules, products can only be labeled as made in the USA. 
If all or virtually all of the products is made in the United States. 
This strict rule ensures that American consumers can rely on the 
assertions made by manufacturers, on U.S. made products. American 
consumers have come to rely on this label, as insurance that the 
components, materials, and labor used to make the product are from the 
United States. To change the standard would invite confusion and 
undermine the value of the made in the USA label.
  The FTC's proposal is opposed by many of the country's leading 
consumer groups, including the National Consumer's League, the National 
Council of Senior Citizens, and Citizen Action. Moreover, many leading 
manufacturers, agriculture groups, and labor unions oppose changes to 
the current standard. In my State of South Carolina one of our pre-
eminent manufactures, Nucor Steel Corp., is among the corporations 
opposed to the FTC changes.
  In addition, by permitting manufacturers to mislabel their products, 
the FTC is encouraging American employers to transfer manufacturing of 
components or materials abroad. Because consumers prefer products made 
in the United States, the ``Made in USA'' label is strong incentive for 
manufacturers to keep jobs in the United States. By permitting 
manufacturers to shift manufacturing abroad where they can pay lower 
wages and still maintain the benefits of labeling products as made in 
the USA, the FTC is explicitly encouraging the transfer of jobs abroad.

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