Reynolds Wrap maker must face lawsuit over ‘Made in USA’ label: Judge

• Reynolds Wrap is known as an American institution dating back decades. However, its use of the label “Made in U.S.A.” has led to a class action lawsuit.
• A U.S. district judge ruled Reynolds Consumer Products must face the class action suit which alleges the company violated New York’s consumer protection laws.
• Reynolds called the suit “another lawyer-driven class action seeking to profit from a truthful ‘Made in the U.S.A.’ statement.”

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Reynolds Wrap aluminum foil is known as an American institution. Its history dates back decades. However, now its place in Americana is being called into question by a class action lawsuit.

How did Reynolds Wrap get its start?

After working for his uncle at R.J. Reynolds Tobacco Company just after the start of the 20th century, R.S. Reynolds joined his two brothers to form the Reynolds Corporation, making soaps and cleaning products.

Due to World War I, soap was deemed “nonessential.” This led to the company stopping production in 1914. A few years later, the brothers sold the company.

In 1919, R.S. Reynolds started the United States Foil Company. Seven years later, he switched its production from tin and lead to aluminum. In 1928, he formed the Reynolds Metal Company.

Before the start of World War II, Reynolds alerted President Franklin D. Roosevelt that the country would need to bulk up its aluminum production to build necessary military equipment. Reynolds received a government loan to build an additional factory.

By the time the war started, Reynolds Metal had become the second-largest producer of basic aluminum in the United States. Following the war, the company turned its focus to household products.

In 1946 (or 1947, depending on whose timeline you are looking at), the company introduced Reynolds Wrap aluminum foil to the market and began its ascent to becoming a staple in kitchens across America.

What led to a class action lawsuit against Reynolds?

Today, Reynolds Wrap is under the brand Reynolds Consumer Products. The product is sold in stores all over the U.S. — including at a Target store and a B.J.’s Wholesale Club location in New York. Those are the places Bronx resident Anaya Washington said she purchased her Reynolds Wrap, which came in a box displaying a label that read “Foil Made in U.S.A.”

That patriotic phrase led Washington to become the plaintiff in a lawsuit against Reynolds Consumer Products filed in March 2024. On Monday, March 3, a U.S. district judge ruled Reynolds Consumer Products must face the class action suit.

What does Washington’s complaint say?

According to the complaint, Reynolds’ use of the phrase “Foil Made in U.S.A” is false, misleading and violates New York’s consumer protection laws regarding “deceptive acts or practices” and “false advertising.”

At the heart of the suit is what goes into making the foil, bauxite and alumina. Bauxite is the raw material for the aluminum found in aluminum foil. Once processed, the bauxite becomes alumina, which through the smelting process, is turned into aluminum.

The complaint states, “All, or virtually all, of the bauxite used in the products is sourced from outside of the United States.”

It also says, “A substantial amount of the alumina that is used in the aluminum that is used in the product is transformed into aluminum outside of the United States.”

Therefore, the suit claims, “a substantial amount of the making, manufacturing, and/or production of the aluminum foil products takes place outside of the United States, contrary to the ‘Made in U.S.A.’ claim.”

The complaint claimed the “Made in U.S.A.” representation was a major factor in Washington and other shoppers deciding to purchase the Reynolds products.

“Plaintiff trusted the Reynolds Wrap brand, because it is the equivalent of Kleenex (facial tissues) and Vaseline (petroleum jelly) in terms of its identity and position in its product category,” according to the lawsuit. “Plaintiff would not have purchased the product if she knew the ‘Made in U.S.A.’ representations and omissions were false and misleading, or she would have paid less for it.”

In his ruling, U.S. District Judge Andrew Carter in Manhattan said Washington plausibly alleged she paid more due to the U.S.A. label. Carter said Washington and other consumers can try to prove Reynolds violated the protection laws.

Reynolds called Washington’s suit “another lawyer-driven class action seeking to profit from a truthful ‘Made in the U.S.A.’ statement.” 

Washington’s suit is seeking at least $5 million in damages.

In 2023, Reynolds faced a similar class action lawsuit, filed by Zulaika Mayfield of California. It also stemmed from the company’s “Made in U.S.A.” label.

What is the FTC’s rule for “Made in U.S.A” products?

In 2021, under the Biden administration, the Federal Trade Commission finalized a new rule to “crack down on marketers who make false, unqualified claims that their products are made in the U.S.A.”

Under the rule, the FTC said, marketers making unqualified made in U.S.A. claims on labels should be able to “prove that their products are ‘all or virtually all’ made in the United States.”

In 2024, one major retailer faced the penalties for violating this rule. The FTC required kitchen supply chain William Sonoma to pay a record civil penalty of $3.175 million.

“Williams-Sonoma claimed its products were made in the United States even though they were made in China,” then-FTC Chair Lina M. Khan said. “Williams-Sonoma’s deception misled consumers and harmed honest American businesses. Today’s record-setting civil penalty makes clear that firms committing Made-in-USA fraud will not get a free pass.”