Amended in Assembly July 13, 2015

Amended in Assembly July 2, 2015

Amended in Senate May 19, 2015

Amended in Senate April 14, 2015

Senate BillNo. 633


Introduced by Senator Hill

(Principal coauthor: Assembly Member Jones)

(Coauthor: Senator De León)

February 27, 2015


An act to amend Section 17533.7 of the Business and Professions Code, relating to false advertising.

LEGISLATIVE COUNSEL’S DIGEST

SB 633, as amended, Hill. Consumer protection: “Made in U.S.A.” label.

Existing law prohibits the sale or offering of sale in the state of any merchandise on which merchandise or on its container appears the words, “Made in U.S.A.,” “Made in America,” “U.S.A.,” or similar words when the merchandise or any article, unit, or part thereof, has been entirely or substantially made, manufactured, or produced outside of the United States.

This bill would exempt from the prohibition merchandise made, manufactured, or produced in the United States if either the merchandise has one or more articles, units, or parts from outside the United States if they do not constitute more than 5% of the finalbegin insert wholesale value of theend insert product or the manufacturer makes a specified showing regarding the articles, units, or parts from outside the United States and they do not constitute more than 10% of the finalbegin insert wholesale value of theend insert product. The bill would also exempt merchandise sold for resale to consumers outside of the state.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 17533.7 of the Business and Professions
2Code
is amended to read:

3

17533.7.  

(a) It is unlawful for any person, firm, corporation,
4or association to sell or offer for sale in this state any merchandise
5on which merchandise or on its container there appears the words
6“Made in U.S.A.,” “Made in America,” “U.S.A.,” or similar words
7if the merchandise or any article, unit, or part thereof, has been
8entirely or substantially made, manufactured, or produced outside
9of the United States.

10(b) This section shall not apply to merchandise made,
11manufactured, or produced in the United States that has one or
12more articles, units, or parts from outside of the United States, if
13all of the articles, units, or parts of the merchandise obtained from
14outside the United States constitute not more than 5 percent of the
15 finalbegin insert wholesale value of theend insert manufactured product.

16(c) (1) This section shall not apply to merchandise made,
17manufactured, or produced in the United States that has one or
18more articles, units, or parts from outside of the United States, if
19both of the following apply:

20(A) The manufacturer of the merchandise shows that it can
21neither produce the article, unit, or part within the United States
22nor obtain the article, unit, or part of the merchandise from a
23domestic source.

24(B) All of the articles, units, or parts of the merchandise obtained
25from outside the United States constitute not more than 10 percent
26of the finalbegin insert wholesale value of theend insert manufactured product.

27(2) The determination that the article, unit, or part of the
28merchandise cannot be made, manufactured, produced, or obtained
29within the United States from a domestic source shall not be based
30on the cost of the article, unit, or part.

31(d) This section shall not apply to merchandise sold for resale
32to consumers outside of California.

P3    1(e) For purposes of this section,begin delete goodsend deletebegin insert merchandiseend insert sold or
2offered for sale outside of California shall not be deemed
3mislabeled if the label conforms to the law of the forum state or
4country within which they are sold or offered for sale.



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