Starting in 1938, the factory was engaged in the mixing and compounding of perfumes, powders, cosmetics and other products. Chanel Inc. imported the perfume essences from France and then mixed with domestic alcohol and water, then bottled, labeled, packaged, sells, ships and distributed fragrances in USA. Sometimes you may find a label saying "compounded in USA."
In order to prevent confusion to the consumer, the US distributor was forbidden to use the words "France" or "Paris" on labeling or packaging, because it was appear that the perfumes or products were made, bottled, sealed and imported from France, which was not the case. If the name such as "Gardenia de Chanel" or "Glamour de Chanel" or "Jasmin de Chanel" were used, the appropriate action would to include a label stating the items were compounded in the USA.
Also, this is time period in which you see labels and packaging marked in English, "Russia Leather," "Woods of the Isles" and "Toilet Water". In simple terms, this legal information explains the outcome of a court case between CHANEL Inc. and the Federal Trade Commission (FTC). The case was heard by the Circuit Court of Appeals in 1941. Here's a breakdown:
- Dismissal of Petition: Chanel's request to review the FTC's order was dismissed. This means Chanel had to comply with the FTC's ruling.
- FTC's Ruling: The FTC had ordered Chanel to stop certain practices related to the marketing of their perfumes, powders, cosmetics, and other beauty products. Specifically:
- Misleading Origin Claims: Chanel was prohibited from suggesting that their products, which were made in the United States, were made in France or any other foreign country by using terms like "Paris" or "France" unless it was clearly stated that the ingredients were from these places.
- Use of Foreign Terms: Chanel could not use French or other foreign terms on their U.S.-made products unless an English translation or equivalent was provided alongside.
- Product Names: Chanel was forbidden from using names like "Glamour de Chanel" or "Jasmin de Chanel" for U.S.-made products without clearly indicating that these products were made in the United States.
In summary, the court upheld the FTC's decision, ensuring that Chanel could not mislead consumers about the origin of their products by using foreign-sounding names or terms without proper clarification.
These products were those made in Chanel's factory in the USA. Chanel Inc, the US factory and distributor, imported the essences from France and then had them blended with domestic American alcohol, then bottled in bottles made in the USA and then packaged in packaging also made in the USA. These USA made items were sold in the American market.
Chanel, like other companies, such as Guerlain, used this technique to save money on import and export duties. However, FTC rulings forced the perfume companies to state on their packaging that the products contained imported essences, but were blended or compounded in the USA.
These are not "errors" made in packaging, but simply Chanel's compliance of the ruling.
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