Today's Law As Amended


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AB-858 False advertising.(2011-2012)



As Amends the Law Today


SECTION 1.
 It is the intent of the Legislature in enacting this measure to clarify existing state law with respect to federal law in order to improve this state’s ability to successfully compete with other states and nations for jobs, investments, and manufacturing.

SEC. 2.

 Section 17533.7 of the Business and Professions Code is amended to read:

17533.7.
 (a) It is unlawful for any person, firm, corporation, corporation  or association to sell or offer for sale in this state State  any merchandise on which merchandise or on its container there appears the words “Made in U.S.A.,” U.S.A.”  “Made in America,” “U.S.A.,” or similar words if when  the merchandise or any article, unit, or part thereof, has been entirely or substantially made, manufactured, or produced outside of the United States.
(b) This section shall not apply to merchandise made, manufactured, or produced in the United States that has one or more articles, units, or parts from outside of the United States, if all of the articles, units, or parts of the merchandise obtained from outside the United States constitute not more than 5 percent of the final wholesale value of the manufactured product.
(c) (1) This section shall not apply to merchandise made, manufactured, or produced in the United States that has one or more articles, units, or parts from outside of the United States, if both of the following apply:
(A) The manufacturer of the merchandise shows that it can neither produce the article, unit, or part within the United States nor obtain the article, unit, or part of the merchandise from a domestic source.
(B) All of the articles, units, or parts of the merchandise obtained from outside the United States constitute not more than 10 percent of the final wholesale value of the manufactured product.
(2) (b)  The determination that the article, unit, or part of the merchandise cannot be made, manufactured, produced, or obtained For purposes of subdivision (a), a product that is made all or virtually all in the United States, within the meaning of the Enforcement Policy Statement on U.S. Origin Claims issued by the Federal Trade Commission (62 Fed.Reg. 63756 (Dec. 2, 1997)), shall be deemed merchandise that has been entirely or substantially made, manufactured, or produced  within the United States from a domestic source shall not be based on the cost of the article, unit, or part. States. 
(d) This section shall not apply to merchandise sold for resale to consumers outside of California.
(e) For purposes of this section, merchandise sold or offered for sale outside of California shall not be deemed mislabeled if the label conforms to the law of the forum state or country within which they are sold or offered for sale.