Shinola marketed watches as 'Built in Detroit' — the FTC found 100% imported materials

Shinola launched in 2013 as a Detroit-made luxury brand, selling watches under the slogan "Where American is Made" and the mark "Built in Detroit." The brand charged premium prices on the strength of its American manufacturing story, positioning itself as a revival of US watchmaking.

In June 2016, the FTC issued a closing letter finding that 100% of the cost of materials used to make certain watches was attributable to imported materials. The watches used Swiss movements and foreign components; only final assembly took place in Detroit. The FTC applied its "all or virtually all" standard, under which unqualified US-origin claims require that virtually all significant parts and processing be American.

The FTC closed the matter without a penalty because Shinola had already begun a remedial action plan: qualifying "Built in Detroit" with "with Swiss and imported parts," retiring the "Where American is Made" slogan, redesigning watch casebacks, applying corrective hangtags to unsold stock, and updating all advertising and employee training materials.