By Jonathan Stempel
NEW YORK (Reuters) -The maker of Reynolds Wrap aluminum foil must face a proposed class action claiming it misled consumers who wanted to "buy American," by falsely claiming that its foil was "Made in USA," a U.S. judge ruled on Monday.
U.S. District Judge Andrew Carter in Manhattan said consumers can try to prove that Reynolds Consumer Products (NASDAQ: REYN ) violated New York state consumer protection laws by using false and misleading packaging for its namesake foil.
Reynolds and its lawyers did not immediately respond to requests for comment.
According to the complaint filed last March, substantially all bauxite in Reynolds’ foil comes from outside the United States, where little of the ore is produced, and much of it is eventually transformed into aluminum outside the United States.
This made Reynolds’ "Foil Made in USA" claim false and misleading to reasonable consumers, because they would spend more on products "made in America," the complaint said
The plaintiff, Anaya Washington of Bronx, New York, said she bought Reynolds Wrap at Target and other stores, believing the brand as trustworthy and familiar as Kleenex and Vaseline, and wouldn’t have bought the foil had she knows where it came from.
In seeking a dismissal, Reynolds said Washington relied on generic "overpayment" accusations rather than show harm.
It also called the case "another lawyer-driven class action seeking to profit from a truthful ’Made in the USA’ statement."
But the judge said Washington plausibly alleged she paid more than she would have but for the "Foil Made in USA" label. The lawsuit seeks at least $5 million of damages.
Many lawsuits accuse companies of using imprecise labeling that induces shoppers to pay more, including through appeals to their patriotism.
In 2021, the U.S. Federal Trade Commission adopted a "Made in USA Labeling Rule" to protect businesses and consumers from being misled over product origins.
U.S. President Donald Trump, meanwhile, is encouraging global businesses to manufacture more products in the United States.
Washington’s lawyer did not immediately respond to a request for comment.
The case is Washington v Reynolds Consumer Products LLC, U.S. District Court, Southern District of New York, No. 24-02327.