We’ve all heard the adage that the three most important things in real estate are location, location, location. When it comes to product labeling and advertising, particularly “made-in-the-USA” claims, the three most important considerations are substantiation, substantiation, substantiation.

An understanding of Federal Trade Commission (FTC) guidelines and California’s recently amended law governing made-in-the-USA claims is critical to avoid becoming the next defendant in the rash of false advertising lawsuits sweeping the country. Consumers who bring false advertising lawsuits, which are often filed as class actions, allege that they either would not have purchased the product (and thus are entitled to a refund of the full purchase price) or would not have paid as much for the product (and thus are entitled to the difference of what it is actually worth and what they paid) had it not been falsely advertised. Consumer protection advocates claim that these lawsuits serve to keep manufacturers honest in their advertising. Critics and advocates for legal reform argue that these lawsuits primarily benefit the lawyers who bring them. No matter what side of the fence you reside in that debate, there is no denying that it is best to avoid these suits.