[Congressional Record Volume 143, Number 122 (Monday, September 15, 1997)]
[Senate]
[Page S9352]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       PROTECT TRUTH IN LABELING

 Mr. ABRAHAM. Mr. President, last Thursday, Senator Hollings 
and I introduced a resolution that aims to protect truth in labeling 
and, specifically, the integrity of the ``Made in USA'' label. It would 
express the sense of Congress that the Federal Trade Commission should 
retain the current standard for labeling products ``Made in USA.''
  For over 50 years now, Mr. President, consumer goods have been 
labeled ``Made in USA'' when, and only when, they were made all or 
virtually all in the United States. But recently the FTC announced 
plans to allow companies to use the ``Made in USA'' label on products 
for which U.S. manufacturing costs represent as little as 75 percent of 
total manufacturing costs and the product was last substantially 
transformed in the United States. Alternatively, a product could be 
labeled ``Made in USA'' if it was last substantially transformed in the 
United States and all its significant inputs were last substantially 
transformed in the United States.
  In practice, Mr. President, this means that products containing no 
materials or parts of U.S. origin could nonetheless be labeled as 
``Made in USA.'' Should the company expend 75 percent of its 
manufacturing costs or engage in the final substantive assembly or 
other modification of the product in the United States, it could 
display the ``Made in USA'' label on the product, even if its entire 
content, including manufactured parts, came from overseas.
  In my view, Mr. President, such rules would in effect condone false 
advertising. Many Americans look specifically for the ``Made in USA'' 
label because they want to support American workers. These loyal 
Americans do not believe that they are purchasing products mostly made 
in the USA, let alone products for which most manufacturing costs were 
incurred in the USA, or which were substantially transformed in the 
USA. Quite rightly, consumers who look for the ``Made in USA'' label 
believe that in purchasing a product with that label they are getting 
something made all or virtually all in the United States.
  Also important, Mr. President, are the expectations of the many 
companies that have made substantial investments in plant and 
equipment, as well as hiring and training, in the United States. These 
companies have a right to expect that the ``Made in USA'' label, which 
they have worked so hard to earn and maintain, will continue to apply 
only to products made all, or virtually all, in the United States.
  To dilute the requirement for use of the ``Made in USA'' label would 
be to lower the value of that label. It would allow companies operating 
substantially overseas to deceive American consumers who are attempting 
to support truly American made products and workers. It would 
discourage companies from investing in this country by telling them, in 
effect, that they will no longer receive any benefit for keeping jobs 
at home. The result would be a loss of American jobs and morale, as 
well as a critical blow to consumer confidence in the veracity of 
product labels.
  Mr. President, the American people have a right to expect that the 
``Made in USA'' label will mean what it says. For over 50 years they 
have depended on that label to assure them that they are purchasing 
products made all or virtually all in the United States. I urge my 
colleagues to join me in sending the message to the FTC that we must 
keep things that way.

                          ____________________