Is it Made in the USA? | Fraud in Apparel Industry

A very good and popular question and unfortunately ---there is no good solid answer.

This fraudulent action usually involves using foreign made product that is brought into the United States, and then sent to a shop which does the Label Switching. Then the new 'Made in U.S.A.' goods are then shipped to the distributor or reseller and sold as a U.S. Product.

Sometimes the 'false Label' is just sewn over the original. (But who bothers to take the label off to check?) Or the Original is taken out and replaced. It is hard to openly spot if the work is done right. If mistakes are made or the work is just plain shoddy, then you can maybe spot something. But, still it is much better to catch the switching in the act. Then the U. S. Government can do something.

Added into the problem is the fact that many Apparel distributors keep Like Items in stock from both U.S. Manufacture, and an Import version. This is common with todaynylon bomber jackets and Parkas. They offer the U.S. version until it runs out of stock, and then restock with the Import Version. This is not only legal, but it is also confusing to customers and retailers alike.

Now, with T-shirts and Fleece, the job in catching fraudulent Labeling is becoming increasingly harder to identify. These products have mostly switched to ink printed labeling, replacing the Tag-Labeling of old. Now, these products can be brought into the country with no labeling and printed with Made in USA stamping with no one the wiser. Or they can just add a new old fashioned tag. Here, you have to catch the load as it ships or as it arrives to address the fraud.

Often times, the Price can be a dead give that something is not right. For instance, most good quality or superior quality U.S. Made G1 Flight Jackets, made of Leather, always sell for $300 to $500 depending on type of leather and graded quality. When shopping, you suddenly find a labeled U.S. Made G1 Navy Flight Jacket or a G1 Marine Flight Jacket, listed as being Brand New ---selling for only $150. The price is so Off-Market and away from the normal market pricing for U.S. Leather Goods ---it screams that something is wrong. This is a Red Flag. Any decent Leather G1 Flight Jacket made by any reputable U.S. factory doesn't even get made for less than $140. We're in the business and we know what these quality jackets cost to make. So when you see something that says Made in U.S.A., look at the Price and judge it accordingly. It could be a foreign made product that has undergone a label switch. Use the old Rule that something that looks like a gift horse, usually is not.  

If any product is priced too low against the norm, it is probably not what you really think it is, or wish it to be.

To add to the problem, many retailers, and apparel jobbers don't care if an article is marked 'Made in USA'. In many cases, Made in USA usually means it costs a little more, but the quality is superior. Plus, some jobbers and vendors only ask for 'Imports' because they are less expensive and they can make more money on them. That is not to say that all imported articles are cheap buys and worthless. On the contrary, a few imported leathers are very high quality, but they also have a high price tag to it.

About 10 years ago, China was producing and shipping to the United States some very high quality leather coats and jackets. They also offered a hefty kick back to many discount U.S. retailers if they would sell their products instead of American ones. American manufacturers were pushed out of many markets, with the high quality Chinese goods being swooped up by American Consumers. The Chinese product was less expensive than the American product, but it was good quality and many Americans bought up the coats and jackets.

Today, the 'kickbacks' are gone and the Chinese are not shipping their best product to America. Against no competition, why should they pay kickbacks? Why should they offer their very best product? Today, the Chinese glut the American market with pure junk, and get away with it. There is no one to go against them.

Instead of quality, the Chinese are currently shipping their lower level production and even seconds. They are doing this with all of their current product markets within the U.S. That is why your shirts and pants develop holes in them within weeks of purchase. That is why your dog food kills your pets. Why should the Communist Chinese care about a few dead American puppies or kitties. Do you really think the Chinese care about the lead levels in their toys sold for American Kids. This is also why we hear of other health threatening products made in China. You are not buying anything close to good or safe merchandise here. You, the American consumer, are being forced to buy junk or dangerous products from the Chinese, and the Chinese are quietly laughing about it all the way to their State owned bank.

And there are scoundrels who will take the Chinese junk products, and place a Made in USA Label inside it and then sell it to you. This is also true of articles made in Pakistan, India, and from Indonesia. Sometimes, you just can't tell what is happening.

So what is a good shopper to do?

1) Well, you can develop a trust factor with whom you shop with. It does help. Like buying a diamond from a Jeweler who takes the time to instruct you on what a good diamond is as opposed to a poor diamond within the same offered price range. Even buying a Vehicle from a trusted dealer certainly helps in the long run. Jumping around car lots puts you at risk of buying a not so good lemon. The consumer can and should always develop a good relationship with who they want to buy from.

2) The Consumer can also be more aware of the stores they shop and the type of merchandise they offer for their customers. Watch from season to season if the prices differ too much and the quality really drops. That is a dead give-away that the main approach to their business has changed upstairs within their management. Any drastic change in an apparel store's overall quality means a huge change in their approach to what they are offering to their customers. Such a change also speaks to how they view their customers as well.

3) Quality vs. Price Listed. Good Quality Leather Apparel is special. It is not cheap. Good quality leather comes with a decent price tag and consumers should know this, but that does not mean they cannot get hoodwinked from time to time. Too low a price should be a dead give away that something is not right.

There is not a good answer to Label Switching. It has always been with us and it will most likely stay a part of the Apparel Industry. Consumer discipline and maintaining a good relationship with your retailers will help you from getting taken in.

Sometimes, good standing Retailers get fooled too. Several winters ago, some very high profile Retailers found out they had been hoodwinked into selling "Fox & Rabbit Fur" trimmed coats that turned out to be illegal 'Dog Fur and Cat Fur" from Chinese and Melanesian manufacturers. So there is no easy answer.