The Largest “Made in USA” Scandal in History.

TL;DR: Since at least 2021, Kubota North America Corporation systematically labeled millions of wholly-imported replacement parts as “Made in USA.”

By exploiting patriotic consumer sentiment and failing to update labels after moving production overseas, Kubota engaged in a massive deception that undermined honest competitors and misled the dumbass American public. This scandal ended up being the largest civil penalty ever recorded for “Made in USA” labeling violations.

Please continue reading to discover the deeper systemic implications of this case and how such corporate greed erodes the foundations of our economic well-being.

Table of Contents

• The Anatomy of a Patriotic Deception
• A Timeline of Deceit
• Neoliberal Capitalism and the Race to the Bottom
• The Economic Fallout: Beyond the Civil Penalty
• Corporate Ethics in an Age of Global Hegemony

The Anatomy of a Patriotic Deception

In the domestic world (yes, i know how oxymoronic that sounds) of corporate social responsibility, few symbols carry as much weight (or are as cynically exploited) as the “Made in USA” label. For Kubota North America, this wasn’t merely a labeling error; it was a calculated strategy of corporate greed.

The evil company knowingly capitalized on the trust of American farmers and workers, selling them the “American Dream” while shipping the actual production to low-wage jurisdictions abroad.

This here was about the fundamental erosion of corporate accountability. When a multi-billion dollar entity decides that the truth is an optional accessory to its bottom line, the very fabric of market transparency begins to unravel.

A Timeline of Deceit

The following timeline outlines the progression of Kubota’s alleged misconduct, illustrating a pattern of behavior that prioritized profit over corporate ethics.

Timeline of Corporate Misconduct

Neoliberal Capitalism and the Race to the Bottom

I often write of the “American Empire” and its tendency to prioritize power over people. In this case, we see the domestic wing of that same empire: the corporation. Under the dictates of neoliberal capitalism, Kubota treated the American worker not as a partner, but as a branding tool.

By offshoring production while retaining the domestic label, they successfully achieved the ultimate capitalist goal: the lowest possible labor costs paired with the highest possible perceived value.

This maneuver directly contributes to wealth disparity, as the savings from cheap foreign labor are rarely passed to the consumer; they are instead funneled into executive bonuses and shareholder dividends.

The Economic Fallout: Beyond the Civil Penalty

The $2 million penalty, while record-breaking, is a mere drop in the bucket for a corporation of this scale. The true economic fallout is felt by the “honest businesses” mentioned by the FTC… the small-scale manufacturers who actually pay American wages and follow environmental regulations.

When a giant like Kubota cheats, it creates a “race to the bottom” where integrity becomes a competitive disadvantage. This impacts public health indirectly by hollowing out local economies, leading to the decay of the very communities that Kubota claims to serve with its “American-made” products.

Corporate Ethics in an Age of Global Hegemony

Why does this matter? It matters because when truth becomes a commodity to be manipulated, democracy itself is at risk. If we cannot trust a label on a machine, how can we trust the institutions that regulate them?

There is a press release on the FTC’s website about this very same scandal: https://www.ftc.gov/news-events/news/press-releases/2024/01/ftc-action-leads-2-million-penalty-against-kubota-false-made-usa-claims