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Schiit Happened: The Story of the World's Most Improbable Start-Up

Discussion in 'Jason Stoddard' started by jason stoddard, Jan 23, 2014.
  1. dieslemat
    Gosh the FTC is too politcally correct
    sam6550a, yonson and US Blues like this.
  2. US Blues
    Great chapter, Jason. Sorry things got so ASS-Y 9 for y'all.
    Last edited: Jan 23, 2019
  3. yonson
    Thanks for the Chapter Jason.

    Is this a new "rule" at the FTC or has it been around all along, and they are just now starting to really enforce it?
  4. Jason Stoddard
    It’s been the same all along. It can be enforced on any manufacturer at any time.

    The real problem is there is no clear definition, other than “entirely made of 100% US-sourced parts from US stock.” Ninety-nine percent isn’t enough to protect you. At that point, you need to prove—for every product, individually—that the non-US content is negligible and doesn’t impact the product’s function. Yeah, have fun with that. We’d have to hire a dozen people to keep track of it...and maybe be tied up with legal stuff for years about how a product’s chip resistors could be considered “not necessary to its function.” There are no US manufacturers of chip resistors.
    Schiit Audio Stay updated on Schiit Audio at their sponsor page on Head-Fi.
    https://www.facebook.com/Schiit/ http://www.schiit.com/
  5. Pietro Cozzi Tinin
    There will be not one customer outside the US that gives a schiit.
    Last edited: Jan 23, 2019
  6. prof.utonium
    We (the audio community) appreciate your integrity-built products for what they are. This label change is more like a bad date than a divorce, just move on. We won’t think much about it and I hope you don’t either. Thanks for the great chapter.
    Last edited: Jan 23, 2019
  7. Rensek
    Yeah government regulations can be schiity. Glad you handled it like a responsible person. I deal with phone calls or emails about the same topic on a weekly basis. The government regulations are an "it is what it is" deal. Rules of origin, marking, and free trade agreement details are a pain for everyone. Many people can't wrap their head around the fact that the regulations aren't written in a way that makes sense to them. Many stick their head in the sand and refuse to make changes until the government comes calling, to the detriment of themselves and their company. Not sure about the FTC, but US Customs adheres to a concept called informed compliance. This kind of action on your part is both prudent and responsible. Congrats for putting your business and the livelihood of your employees at the top. It's very frustrating, but you will all be better off for it.
    Last edited: Jan 23, 2019
  8. yonson
    That's insane, I've worked for numerous companies over the years that have used (and most still do) "Made in the USA" and we PROUDLY proclaimed so, however after reading this, there is no way that we could prove that every single component were manufactured here... It's scary that they can come in and shut you down for that.
  9. Jason Stoddard
    Come on, guys, let’s keep this apolitical. I just had to delete a post.
    Schiit Audio Stay updated on Schiit Audio at their sponsor page on Head-Fi.
    https://www.facebook.com/Schiit/ http://www.schiit.com/
    the finisher and Left Channel like this.
  10. bboris77
    Jason, I am just wondering if this will have any implications on the import duties for us Canadians buying equipment directly from Schiit. Traditionally, in addition to the Fedex shipping charges shown when ordering, Fedex adds on another $10 brokerage fee and the local HST tax (in Ontario it is 13%). I never had to pay any actual actual import tariffs or duties because Schiit stuff was labeled as "made in USA". I hope we will not have to pay an additional 5-6% on the entire amount considering the 90% of the product is made in USA.
  11. Rensek
    The labeling changes Schiit made were for the FTC requirements. NAFTA regulations are something entirely different. Their changes shouldn't affect you.

    Question for @Jason Stoddard

    Did you consider keeping the old labeling for stuff you export out of the country? Were the FTC requirements you met for gear sold in the US only, or did they also apply to stuff manufactured for export?

    Edit - I imagine that would be a nightmare to keep track of, just wondering if you considered it.
    Last edited: Jan 23, 2019
    bboris77 likes this.
  12. Pietro Cozzi Tinin
    What would be the sense of that?
    Last edited: Jan 23, 2019
  13. Rensek
    In this case, none to you or I, but many folks worldwide like "Made In".

    I like hearing folks talk about their thought processes, so I asked to see if he had considered it.
  14. garbulky
    I agree with the FTC. I think it's not good to see made in USA when it's really the box and the assembly - not the actual components. I would agree that assembled in USA followed by a blurb in your paperwork about exactly what is made here would be helpful in showing how much is done here.

    Say a resistor or essential transistors is not made in the USA - that points out a significant deficit in USA manufacturing. That we can't get USA made resistors or the components we need to make a component work in the USA is sad. (And other countries are happily making these essential parts of products and thriving). Companies have been able to HIDE this fact from their consumers by using tricky wording like made in USA when they are not actually fully made in USA.

    Sounds perhaps pedantic - but what about manufacturers that do go to the strenuous efforts to actually be fully made in the USA? Do we want people that only assemble in the usa to be part of this designation? That would be unfair to those companies - whoever they are - if they even exist!

    Perhaps when consumers see how little stuff is actually fully made in the usa then it may drive demand for higher priced products that are indeed made in the usa.
    I don't take things like being able to create USA-made products for granted. It takes a lot to get there and we've given a lot of that away. I think the FTC is helping to show us that importance by owning up to what we collectively are doing.
    Last edited: Jan 23, 2019
  15. RickB
    So does this mean the gear that says "Made In USA" will become collectors' items? :ksc75smile:
    ScOgLiO, riffrafff, Zojokkeli and 7 others like this.

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