Roughly 30% of Each ‘Made in USA’ New Balance Sneaker Is Made Outside U.S., Class Action Alleges

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A proposed class action contends that New Balance has falsely marketed its walking and running sneakers as “Made in USA” because as much of 30 percent of the shoes’ individual components, including the soles, are made outside the country. 

The 45-page lawsuit alleges New Balance’s “Made in USA” claim falls short of how the phrase has been defined by the Federal Trade Commission, whose regulations require all or virtually all of a product to be made in America in order to be advertised as such. According to the complaint, New Balance has “been called out by the FTC for its deceptive representations” but has nevertheless continued to use the “Made in USA” claim for its “MADE” shoe series given consumers are willing to pay more for sneakers they believe are made in America.

“Had Defendant disclosed that the Sneakers were not in fact ‘Made in USA,’ Plaintiffs and members of the Classes would not have purchased the Sneakers or would have paid less for the Sneakers than they did,” the case argues. 

The specific New Balance sneaker models the lawsuit claims have been falsely touted as “Made in USA” include:

• New Balance “Made in USA” 990v2;
• New Balance “Made in USA” 990v3;
• New Balance “Made in USA” 990v4;
• New Balance “Made in USA” 990v5;
• New Balance “Made in USA” 992;
• New Balance “Made in USA” 993; and
• New Balance 1540v3. 

Per the suit, New Balance’s “Made in USA” representations can be found on the tongue of some of the above-listed shoes, while others are included on the “Footwear Made in the USA” collection page on the company’s website. The boxes the sneakers come in also display the claim that New Balance shoes have been “made in the U.S. for over 75 years,” the case adds. 

“In short,” the complaint reads, “at nearly every opportunity possible—on the tongues of the shoes and on the shoe boxes—New Balance prominently represents that the Sneakers are ‘Made in the USA.’”

According to the case, the FTC has held that “[f]or a product to be called Made in USA, or claimed to be of domestic origin without qualifications or limits on the claim, the product must be ‘all or virtually all’ made in the U.S.” Per the suit, “all or virtually all” means that all significant parts and processing of a product must be American in origin. 

For the New Balance shoes at issue, imported and/or foreign labor make up “at least 30 percent of any one of the Sneakers,” including the soles, the lawsuit alleges. The case claims the New Balance soles are imported from two Chinese companies. 

According to the lawsuit, New Balance attempts to “circumvent” the FTC’s “Made in USA” rules by including on its website and product packaging a small-print disclaimer that states the “MADE” sneaker series “contain a domestic value of 70% or greater.” The case contends that New Balance does not define “domestic value,” meaning it is unclear how much of the sneakers listed on this page are made in the United States. 

“Moreover, the disclaimers are not conspicuously displayed such that a reasonable consumer—especially a consumer that purchased the Sneakers from a retail location—would be aware they even exist,” the case argues. 

The lawsuit looks to cover all consumers in the United States who have purchased any of the New Balance sneaker models listed on this page. 

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