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FTC Plays Hardball on 'Made in America'; LinkedIn Finds 35 Parking Spots in Manhattan; Meta Loses Again

By Nat Ives

 

Good morning. This is Patrick Coffee filling in for Nat Ives. Today, the Trump administration wants brands and ecommerce platforms to know it wasn't kidding with its "Made in America" guidance.

The Trump administration has held several events featuring American-made products, like this 2020 showcase including a baseball bat made in Texas. Photo: Michael Reynolds/Zuma Press

The Trump administration put advertisers and ecommerce platforms on notice about dubious “Made in America” claims with an executive order issued earlier this month, I report for the newsletter.

The order instructs the Federal Trade Commission to prioritize actions against companies that make false made-in-the-USA statements and to consider requiring ecommerce platforms to verify all third-party sellers' descriptions of their products' origins.

It doesn’t give the Federal Trade Commission new authority, but it does signal a growing focus on enforcement, according to Julia Solomon Ensor, counsel at law firm Reed Smith.

“This seems like a clear tap on the shoulder from the administration that those efforts should ramp up,” said Ensor, who spent 15 years at the FTC and drafted its Made in USA labeling rule.

The order follows Trump’s January nomination of WeatherTech CEO David MacNeil to an open seat on the FTC. MacNeil, whose company has run Super Bowl ads focused on its domestic manufacturing, told me last year that companies shouldn’t get the advantages that come with “Made in America” status if those claims aren’t true.

The order will likely set the stage for MacNeil to begin implementing his priorities if confimed, said Ensor. MacNeil declined to comment.

A wave of related legal challenges, meanwhile, continues to grow.

A lawsuit in November, for example, alleged that Black Rifle Coffee’s tagline “America’s Coffee” falsely implies that its products are made in the U.S.

Black Rifle moved to dismiss the case in January, arguing that the slogan and its packaging refer to the company’s patriotism. It didn't respond to requests for comment.

 
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ServiceNow Chief Customer Officer: ‘AI Is Now Central to How Work Gets Done’

Chris Bedi sees AI in the enterprise evolving from creating capacity to embracing AI operations and a fully digital workforce of AI agents. Read More

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Bumper-to-Bumper Marketing

LinkedIn Ads made its presence known at this week's NewFronts, the WSJ Leadership Institute's Megan Graham reports for the newsletter.

LinkedIn's ads on wheels made the rounds this week. Photos: Megan Graham

A long line of LinkedIn-branded cars outside a NewFront event in Chelsea caught my eye Wednesday. It’s not uncommon to catch B-to-B ads during industry event-heavy weeks like this in New York City, but the line of branded cars was too long to count.

Photo: Megan Graham

LinkedIn tells me the company is using 35 vehicles as “mobile extensions” of a brand campaign called “The Network That Works For You.” After LinkedIn’s own NewFront event Monday, the cars drove guests from the session to the company’s afterparty. But since then, they haven’t had passengers and are acting as “mobile billboards,” a company spokeswoman said.

I guess that’s one way to drive attention.

 

Quotable

“It starts out innocent and then it goes to weird places."

— Donatas Smailys, CEO of creator platform Billo, on those viral, R-rated AI veggie videos starring pregnant broccoli and homophobic clementines.
 

Two Down, 2,000 Left to Go

This won't be the last time Mark Zuckerberg has to testify in court. Photo: Kyle Grillot/Bloomberg News

Meta lost its second jury trial in as many days, and this time YouTube also took a big hit.

A Los Angeles jury found that both companies were negligent in creating products designed to get children and young people addicted without warning them of the dangers, Meghan Bobrowsky, Erich Schwartzel and Katherine Sayre report.

Unlike the previous case, this one focused on the design of the apps, rather than the content they host, in a successful effort to get around Section 230 of the Communications Decency Act of 1996, which largely shields such companies from liability for things users post.

The most interesting question now might be: is this tech's "big tobacco" moment? Will it change Meta or YouTube’s business models or the way marketers use these platforms?

Investors don't seem to think so, as both companies' share prices rose slightly after the verdict.

Political implications are another point of interest. While many celebrated the verdict as a moment of accountability for big tech, other disparate voices found rare common ground in describing it as a misguided win for trial lawyers and a loss for free speech online. 

More Meta: President Trump named Mark Zuckerberg to his tech policy council along with a dozen other executives including Google co-founder Sergey Brin and Jensen Huang of Nvidia. [WSJ]

One more: Meta laid off around 700 employees on Wednesday, with sales and VR teams hit. [NYT]

 

How's That Hiring Going?

Microsoft's Amy Coleman spoke at the inaugural Chief People Officer Summit. Photo: WSJ Leadership Institute

Speaking of layoffs, Block CFO and COO Amrita Ahuja told the WSJ Leadership Institute's Alan Murray earlier this week that the payments company expects to double its annual revenue per employee from $1 million to $2 million after laying off 40% of its workforce. 

The biggest question from other executives was how Block pulled it off, she said. 

Microsoft EVP and Chief People Officer Amy Coleman offered a different take on staffing in the AI era at Wednesday's inaugural CPO Summit. When looking for new hires, the tech giant is paying closer attention to the idea of "generalists" who can adapt as their roles shift rapidly, Coleman told Alan Murray.

Perhaps most importantly, she said the rise of AI hasn't changed the way she would raise her 4 kids.

"I have 4 kids, 2 are still in college and 2 are out and so it's a really common question I get, Alan, like, would you put them, you know, what, what would you tell them now? Would you have them do that same degree, and I think my answer continues to be yes."

I think we can all appreciate some levity.

 

The Magic Number

1,291

The number of cheesesteaks lined up in the Philadelphia Airport by organizers who successfully broke a Guinness World Record. But who can see the participating chains' logos??

 

Keep Reading

Please don't email me to spoil the last episode of "Love Story," and no I'm not joking. Photo: Sean McCabe for WSJ, Getty Images; Everett Collection

If you’ve been watching “Love Story” and obsessing over pencil skirts, wallet chains and fanny packs, you may have '90s nostalgia. [WSJ]

Everybody is really, really angry online right now. Don't tell your social media manager. [Garbage Day]

The White House is following that ragebait playbook: backlash increases engagement. [WaPo]

Energy drink maker Celsius' stock dropped when Costco debuted a house brand equivalent. [WSJ]

Financial services startup Plaid has acquired This Week In Fintech, a subscription-based publication covering... financial services. [Axios/LinkedIn]

Fast fashion brand Primark spoofed luxury marketing while looking quite posh. [Creative Bloq]

 
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We bring you the most important (and intriguing) marketing and experience news every day. Write me at nat.ives@wsj.com any time with feedback on the newsletter or comments on specific items. We want to hear from you.

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