Agribusiness: Kubota Enjoined from Labeling Imported Products as ‘Made in USA,’ Will Pay $2 Million
On January 25, 2024, the U.S. District Court for the Northern District of Texas issued a stipulated order permanently enjoining Kubota North America from claiming that its products are “Made in the United States” (MUSA) when the products do not comply with the “Made in USA Labeling Rule” (16 C.F.R. Part 323). United States v. Kubota North America Corporation, No. 3:24-cv-00159. According to a complaint filed by the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC), Kubota “incorrectly recorded ‘USA’ as the origin of wholly-imported parts in its sales databases” and “failed to update package designs that incorporated MUSA labels after shifting production of those products overseas.” Because of these systemic failures, DOJ states that, since 2021, “Kubota has sold millions of wholly-imported replacement parts with false MUSA labels.” Additionally, DOJ noted that, in 1999, the company entered into a settlement agreement with the FTC for the same mislabeling activities and, as such, “Kubota has had actual notice since at least 1998 that it is a violation . . . to advertise or label a product as MUSA” if significant components of the product contain imported material or use foreign labor. Also announced by DOJ, the order requires Kubota to pay $2 million in penalties.
National Agricultural Policy: Fish and Wildlife Service Initiates Endangered Species Status Reviews for Nine Species On January 24, 2024, the U.S. Department of Interior (DOI) Fish and Wildlife Service (FWS) published in the Federal Register a notification of petition findings and initiation of status reviews (88 FR 4884) following the completion of 90-day findings on petitions to list additional new species under the Endangered Species Act (ESA).
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Categories: Pennsylvania, Business