The Federal Trade Commission has declared July "Made in USA Month," and with that, issued a clear reminder to advertisers: patriotic marketing must be backed by more than good intentions—it must be factually accurate andlegally compliant.
"Research shows that 61% of Americans consider a product's U.S. origin when purchasing a good," said FTC Chairman Andrew Ferguson. "The Made in USA label is not a free prize. It must be earned."
As consumer focus on domestic manufacturing continues to rise, so too does the FTC's enforcement scrutiny. This July, advertisers should take the time to revisit how they're making—and substantiating—U.S. origin claims.
Two Legal Authorities—But Only One Carries Civil Penalties
There are two overlapping legal standards that govern U.S. origin claims, and while the distinctions between them aren't essential for most marketers to understand, the consequences of violating them absolutely are.
Section 5 of the FTC Act prohibits deceptive advertising, including false or misleading U.S. origin claims made in any format—ads, social media, video, product descriptions, etc. The FTC has long used this authority to bring enforcement actions against marketers making unsubstantiated "Made in USA" claims.
The Made in USA Labeling Rule (16 C.F.R. § 323), finalized in 2021, specifically governs U.S. origin claims on product labels — including physical product labels and depictions of those labels online (e.g., images on e-commerce sites). Violations of the Rule can result in civil penalties exceeding $50,000 per violation (or per day for ongoing violations).
For marketers, the key takeaway is this: even if you're only displaying a photo of a product with a "Made in USA" label online, the FTC considers that labeling under the Rule—and it's subject to enforcement.
What Does It Take to Make an Unqualified "Made in USA" Claim?
To lawfully make an unqualified "Made in USA" claim (i.e., without disclaimers or qualifiers), the advertiser must meet the FTC's three-part test:
Final assembly or processing must occur in the United States
All significant processing must take place in the United States
The product must be made from "all or virtually all" U.S.-sourced components
A common misconception is that 100% U.S.-based manufacturing entitles a brand to make an unqualified "Made in USA" claim. It does not. If the components are even partially foreign, the claim is still potentially deceptive — even if the product was entirely assembled and finished in the U.S. And the question is not whether a supplier is in the U.S., but rather, from where that supplier sourced the components.
What If You Can't Meet the Standard?
If your product doesn't meet the "all or virtually all" test, you can still make a claim—but it must be qualified to avoid misleading consumers. Examples include:
"Made in USA of U.S. and imported parts"
"Assembled in USA"
"Contains 60% U.S. content"
These claims must be truthful, clear, and substantiated with appropriate documentation. Marketers must also be careful with patriotic imagery — the FTC will consider implied claims created by flags, eagles, slogans, or visual branding under its "net impression" analysis.
Compliance Tips for July (and Beyond)
Conduct a supply chain audit – Know where your components come from, and whether they're U.S.-made or imported.
Review product labels—online and offline– If you're displaying product packaging or labels on your website, that's labeling.
Document your claims– Don't rely solely on supplier assurances. Keep records, invoices, and manufacturing breakdowns.
Train your marketing team – Ensure the team understands when and how to use qualified claims.
Update your materials as needed – Claims that were once accurate can become misleading if sourcing or production changes.
The Bottom Line
"Made in USA" claims are powerful—but they're also risky. With the FTC spotlighting U.S. origin claims this July, advertisers should treat this moment as a proactive compliance opportunity. False or unsubstantiated claims—whether on a label or in an ad—can lead to enforcement.
If your brand is making or planning to make U.S. origin claims, now is the time to review your materials and ensure they're not just patriotic—but provable.
Need help auditing claims, drafting qualified language, or training your teams? We're here to help.
This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.
