March 18, 2025

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Court Allows “Made In USA” Lawsuit Against Reynolds To Continue – Advertising, Marketing & Branding

Court Allows “Made In USA” Lawsuit Against Reynolds To Continue – Advertising, Marketing & Branding

Reynolds Consumer Products promotes its aluminum foil as
“Made in USA.” In a lawsuit brought in the Southern
District of New York, a consumer sued for false advertising,
alleging that the claim is false. Reynolds moved to dismiss, and
the court just denied the motion, allowing the case to proceed.

The plaintiff sued under New York law, alleging that
Reynolds’ “FOIL MADE IN U.S.A” claim is false and
misleading because the raw materials that are used to make the
aluminum foil are sourced from outside the United States.
Apparently, aluminum foil is made from bauxite, and bauxite
hasn’t been mined in the U.S. since the 1980s.

In order to state a claim for false advertising in New York, the
plaintiff must show that the advertising is “likely to mislead
a reasonable consumer acting reasonably under the
circumstances.” The plaintiff must also show that the
plaintiff suffered an injury as a result of the deceptive act or
practice.

If the raw materials were actually sourced from overseas, it
should come as no surprise to Reynolds that a claim like this would
be brought. Although it doesn’t provide a private right of
action, the FTC’s Made in USA Labeling Rule prohibits the
labeling of any product as having been made in the United States
“unless the final assembly or processing of the product occurs
in the United States, all significant processing that goes into the
product occurs in the United States, and all or virtually all
ingredients or components of the product are made and sourced in
the United States.”

Interestingly, though, in its motion to dismiss, Reynolds
doesn’t really argue that the raw materials weren’t
imported. Rather, Reynolds argued that the plaintiff hadn’t
sufficiently alleged an injury. The court didn’t buy the
argument, though. The court wrote, “Plaintiff sufficiently
specified which product she purchased (Reynolds Wrap aluminum
foil), detailed the alleged misrepresentation (the label “FOIL
MAD IN U.S.A. and the three stars), where and when she made the
purchase (at Target, C-Town, and BJ’s stores in New York during
the statutory period), and that she paid a premium price
(approximately no less than $4.999 per 75 square feet, higher than
similar products represented in a non-misleading way.”

Washington v. Reynolds Consumer Products, 2025 WL
673615 (S.D.N.Y. 2025).

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The content of this article is intended to provide a general
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