A clause in the Treaty of Versailles (an agreement signed following the First World War) dictated that only sparkling wine made in the eponymous French region of Champagne could be marketed under this name. However, as the U.S. senate never ratified it, some manufacturers have got away with labelling their product as such.
(Source: Told by friend. Verified by http://www.worldsstrangest.com/mental-floss/bubble-trouble-the-not-so-sweet-history-of-champagne/.)
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