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A California mom's sharp eye has led to a record-breaking $3 million fine against Williams Sonoma, the parent company of Pottery Barn Teen, for falsely advertising imported products as "Made in the USA."

Mary Schubart, a mother of twins preparing for college, thought she was buying American-made bedding from Pottery Barn Teen.

Online, the items were advertised as "crafted in the USA," a claim that aligned with her goal of purchasing safer, locally made goods, YahooNews said. But when the mattress pads arrived, one tag told a different story: "Made in China."

"I was disappointed," Schubart said. "I try to buy things made in the U.S. because I believe it's safer and helps the economy."

Unsure of what to do, Schubart contacted the nonprofit group Truth in Advertising. The organization had already been watching Williams Sonoma for similar false claims.

According to Laura Smith, the group's legal director, they had previously flagged more than 800 products across seven company websites that were marketed as American-made — when in fact, they weren't.

FTC Fines Williams Sonoma $3M Over False 'Made in USA' Claim

After Schubart's complaint, the Federal Trade Commission (FTC) investigated and fined Williams Sonoma $3.175 million — the largest penalty ever for a "Made in USA" claim.

In a statement, the company said it was "deeply sorry" and blamed the mistake on a website labeling error. "We have improved our processes to help prevent similar incidents in the future," the company said.

FTC rules say that to be labeled "Made in the USA," a product must be "all or virtually all" made domestically. '

That includes all major parts and manufacturing steps. Anything less, and companies can't use that label.

According to CBS News, Laura Smith believes the large fine is a step in the right direction. "Penalties only work when they're big enough to make companies think twice," she said.

This case is part of a growing number of lawsuits and fines against companies for using misleading labels. Shoppers are becoming more aware — and more skeptical.

For families like Schubart's, the lesson is clear: always check product labels and question claims. Look for "Made in the USA" without extra phrases like "assembled" or "designed," which may mean the product still comes from overseas.

As Schubart put it, "If I hadn't checked, I never would have known. And that's not right."