As we noted earlier this month, FTC Chairman Andrew Ferguson designated July as "Made in USA" Month. Because Hallmark still hasn't printed greeting cards to commemorate the month, the FTC celebrated by sending warning letters, instead.
Warning letters to four manufacturers remind the recipients about the requirements for making "Made in USA" claims. The letters state that although the recipients make those claims for certain products, the FTC has received information and complaints suggesting that the products may be imported or may contain significant imported content.
The warning letters to the manufacturers include a reminder about the consequences of making a "Made in USA" claim that doesn't comply with the law. The letters also ask the recipients to respond within five business days explaining what steps they are taking to ensure that their claims do comply.
In addition to sending warning letters to the four manufacturers, the FTC sent letters to two retailers explaining how the FTC's "Made in USA" requirements apply to online marketplaces. The letters identify third-party sellers who may be making deceptive "Made in USA" claims on those marketplaces.
The FTC points out that the claims may violate the law and run afoul of the platform's terms of service. The FTC states that it hasn't determined that the retailers themselves have violated the law. However, the FTC wants the retailers to "monitor, identify, and take corrective action against third-party sellers who make false or misleading 'Made in USA' claims on your online marketplace."
These letters reaffirm the FTC's commitment to ensure that manufacturers comply with the law. They also suggest that the FTC expects retailers to play a role in trying to prevent sellers from making misleading claims on their platforms. Of course, that's a much harder task since retailers will typically not have the information to determine whether a claim is misleading. We'll have to wait and see what the FTC does next.
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