National Advertising Division Refers “Made in USA” Claims by Larose Industries d/b/a Roseart and Cra-Z-Art to the Federal Trade Commission

New York, NY – January 10, 2025 – In a Fast-Track SWIFT challenge initiated by Cedar Alliance, Ltd., BBB National Programs’ National Advertising Division reviewed advertising claims by Larose Industries LLC, operating under the names Roseart and Cra-Z-Art, that its products are “Made in USA.” As Larose Industries failed to respond to the inquiry, in accordance with its Procedures, the National Advertising Division (NAD) is referring the matter to the Federal Trade Commission (FTC).

Fast-Track SWIFT is an expedited process for single-issue advertising cases reviewed by the NAD. Cedar Alliance and Larose Industries compete in the pencil industry.

Cedar Alliance challenged Larose Industries' advertising claims about the country of origin of its pencils, arguing that despite using phrases like "Proudly Made in USA" and using American-themed imagery, the pencils are made from components sourced from China and involve foreign manufacturing and assembly. 

Larose Industries was nonresponsive to NAD's multiple communications regarding the challenge and failed to participate in the self-regulatory process, so pursuant to its Procedures, NAD is referring the matter to the FTC for review and potential enforcement action. NAD has also notified relevant advertising platforms to assess compliance with platform standards.

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