FTC Cracks Down on False 'Made in USA' Claims After Executive Order

The FTC is prioritizing enforcement against false 'Made in USA' claims after a new executive order.

The Trump administration's Executive Order 14392 marks a significant policy shift, ordering the Federal Trade Commission to make enforcement of deceptive 'Made in USA' advertising a top national priority.

• The order also instructs the FTC to evaluate new regulations treating an online marketplace's failure to vet origin claims as a potential unfair or deceptive act.
• Recent FTC enforcement actions include cases against TouchTunes Music Company, Americana Liberty LLC, and Oak Street Manufacturing Company, each settling over deceptive 'Made in USA' assertions.
• TouchTunes promoted dartboards as American-made despite imported components; its settlement includes $625,000 in redress. Americana Liberty LLC paid $167,743 after marketing imported flags as domestic products. Oak Street Manufacturing, penalized $75,000, misrepresented imported footwear as '100% handcrafted' in the U.S.

The FTC's 'Made in USA' standard requires that virtually all significant components and processing be U.S.-based. The Made in USA Labeling Rule (16 C.F.R. Part 323) formalizes these standards and empowers the agency to pursue civil penalties.

"The FTC is committed to ensuring that 'Made in the USA' claims are truthful and trustworthy. We will robustly enforce the 'Made in the USA' standard so that the American people have confidence that their purchases of American-made products support American workers and manufacturing," said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection.

Manufacturers, retailers, and online platforms should closely review compliance protocols, with the threat of significant penalties and reputational damage for violations on the rise.

Yes, but: Detailed FTC plans for online marketplace regulations remain unclear.