Footwear giant New Balance is in hot water as legal action has been taken by a group of consumers against the company. The consumers claim that New Balance has been deceptive in their advertising, as their marketed ‘Made in the USA’ sneakers are only 70 percent American manufactured, with the other 30 percent being outsourced from overseas.
The original suit was filed in 2017 by a group of Californian consumers and included accusations of violating California false advertisings laws, negligent misrepresentation and unfair competition.
While New Balance openly shares that their ‘Made in the USA’ sneakers are 70 percent American manufactured, the group of consumers has insisted that the mark up was deceptive. “New Balance admits that it has a common policy of advertising that its shoes are Made in the USA even when up to 30 percent of the value of the shoes is attributable to foreign-made components and/or labour,” read the official complaint. “Consumers are more inclined to purchase American-made products, and they will pay more for them. New Balance is well aware of this, and it intentionally disseminates deceptive Made in the USA claims in order to capitalise on strong consumer sentiment favouring American products.”
The footwear company is having to pay out $750,000 in a settlement with the prosecution, which was granted preliminary approval by a judge last month. New Balance has declined to comment on the saga, but with a final hearing set for June, we may hear more from the notorious brand.