[co-author: Stephanie Kozol]*
Alaska’s Department of Law’s Consumer Protection Unit recently announced it obtained a Superior Court order issuing a $250,000 civil penalty against B. Merry Studio, which the state alleged to have marketed products as being made in Alaska, when the products were manufactured in the Philippines. The products at issue include knives, figurines, and animal carvings. While some of the products included raw materials sourced from Alaska, the products were assembled in the Philippines. When B. Merry Studio shipped the products to Alaska, their finishings included “Made in Philippines” stickers. The company allegedly replaced these stickers with labels that stated, “Alaskan Made” and “Made in Alaska.”
Although some of the material was sourced from Alaska, the court still found B. Merry Studio’s description of the products to be deceptive since “they were made substantially in the Philippines.” The Consumer Protection unit argued, and the court agreed, that this violated Alaska’s Unfair and Deceptive Trade Practices Act. As a result, B. Merry Studio is subject to a civil penalty of $250,000.
Why It Matters
This case underscores the role consumer protection laws play in regulating businesses and industries. Companies must ensure their marketing practices accurately reflect the origin and production processes of their products. This is particularly true for companies operating in niche markets, such as those relying on regional authenticity.
*Senior Government Relations Manager
