- with readers working within the Healthcare industries
The FTC announced today three enforcement actions against companies that are alleged to have falsely advertised their products as made in the United States, alongside two closing letters to companies that came into compliance after being contacted by the agency. The sweep follows a March White House Executive Order directing the FTC to prioritize the pursuit of unsubstantiated domestic-origin claims, and notably represents the first wave of Made in USA enforcement by the current Commission.
The three settlements demonstrate how broadly "Made in USA" claims appear across product categories. TouchTunes Music Company, which makes electronic dartboards for residential and commercial use, claimed its products were American-made while assembling them domestically from imported, essential components that included computer chips, cameras, and flatscreen monitors. The FTC charged that domestic final assembly alone is not enough to support an unqualified claim, which requires that the product be "all or virtually all" made in the U.S. TouchTunes stipulated to a proposed order requiring $625,000 in consumer redress, the largest amount ever in a Made in USA Labeling Rule case.
Americana Liberty LLC and Three Nations LLC, along with their principals, sold American flags, U.S. military flags, and patriotic display accessories bearing claims including "100% Made in the USA" and "Built by Americans for Americans." According to the complaint, several products were wholly imported from China and others contained significant Chinese-sourced components. The defendants also allegedly violated the Textile Act by failing to include required country of origin disclosures on product labeling. The stipulated order provides for $167,743 in consumer redress. This action followed a July 2025 warning letter, a reminder that the agency's warning letter program is very much a precursor to, not a substitute for, enforcement.
Oak Street Manufacturing Company, which does business as Oak Street Bootmakers, marketed its footwear as "handcrafted 100%" in the United States and made "from heel-to-toe, using no pre-assembled components from overseas." The FTC alleged that since May 2023, Oak Street used a factory in the Dominican Republic to produce uppers, sourced outsoles from Brazil, and in some instances completed final assembly outside the United States as well. The stipulated order requires $75,000 in consumer redress. This action also followed a July 2025 warning letter to Oak Street.
A few things are worth flagging. First, the substantive standard has not changed: an unqualified "Made in USA" claim requires that all or virtually all significant processing and components originate domestically. Final assembly in the United States, standing alone, does not get you there, as TouchTunes learned. Second, today's sweep confirms that the FTC's July 2025 warning letters were not a courtesy notice but a countdown. Both Americana Liberty and Oak Street received those letters and still faced enforcement actions. Third, the Textile Fiber Products Identification Act charges against Americana Liberty are a reminder that for apparel and other textiles, mandatory country-of-origin labeling obligations run parallel to, and independently of, the FTC's Made in USA standard. Getting one right does not mean you have satisfied the other.
The closing letters to Marketing Holders LLC and Lamar Trailers, Inc., issued after each company took remedial steps following FTC contact, highlight the other path available to companies willing to act quickly. That said, both were warned that the Commission retains the right to monitor for compliance and take action if warranted.
With America's 250th anniversary this summer generating a predictable surge in patriotic branding, the timing of this sweep does not seem coincidental. Advertisers making any form of domestic-origin claim, whether through explicit labeling, website copy, flag imagery, or slogans like "Built by Americans," should treat today's announcements as an audit trigger.
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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
