David Muir Reports: Can You Trust Those 'Made in America' Labels?

U.S.-based companies say the mislabeling of products costs workers their jobs
3:11 | 05/12/16

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Transcript for David Muir Reports: Can You Trust Those 'Made in America' Labels?
We turn now to an ABC news investigation tonight, and this simple question. When you buy something that says "Made in America," can you be sure it really is? Tonight, what we found, and the American workers outraged. So many of you at home still tweeting us the dish towels for example, complete with the American flag down below, made in China. That label for oven Mitts by America Americans, made in pakist Pakistan. And the United States sweaters made in China. But those companies telling us, they clearly labeled them made overseas. Director lev Kubiak showed us the deliberate fake of that language-learning tool, Rosetta stone. This looks like the reset that stone you would order from the American company. Right. Yet this one came from China. Look closer. The spelling errors. 100% guaranteed, missing an "E. "Even the state department spelled wrong. And tonight, we've now learned it's not just online shoppers being duped. It's American taxpayers. Government agencies trying to buy made in America supplies with your tax dollars. Right down to the silverware they think has long been made in America. Take a look at general services administration advantage .gov. They sell supplies to those government agenciagencies. That's why on the sight, they have a clear, made in category. Search silverware, and you'll find made in the United States of America right next to this spoon. But how can you be sure that what taxpayers are buying is really made here? We went to find the spoons, liberty tabletop, made in new York, selling their silverware to the Navy, the air force, the army. But it turns out, they're fighting mad, because they started to lose business. Nobody could tell us why. Because also on that website, other distributors like Thompson and little, listed here at made in the usa, but when we called the manufacturer, they told our team, they make this spoon overseas. These knives? Made in China. And this flatware set? Made in China, too. And back in New York, they say this mislabeling is costing American jobs. There's a lot of people that are purchasing unbeknownst to them, products being made where they plot beiare not being made. The government doesn't really police this. It's the distributor of the products listing their own information. A&E supply, made in China. Telling us the product is no longer sold on that site and has been removed, due to the error, telling us the listings are honest mistakes and they are modifying the website. Those American workers in upstate New York tonight argue those mistakes can't be fixed soon enough. Think about this. For every $100,000 we sell, it's probably a job. That's 30, 40 more jobs we could provide in New York. The jobs are overseas. The made in America team will stay on it. That website, the gsa, well, authorities now say that they've given the distributors until the end of this month to correct their listings or be barred from selling.

This transcript has been automatically generated and may not be 100% accurate.

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