- within Insolvency/Bankruptcy/Re-Structuring, Antitrust/Competition Law and Privacy topic(s)
In March, President Trump issued an executive order directing the FTC to prioritize enforcement of Made in USA claims. That enforcement started with three settlements in April and continued this week when the FTC announced that it had sent warning letters to seven more companies.
The fact patterns in these letters are similar to ones we’ve seen before. The companies made various types of “Made in USA” claims—including claims in hashtags, like #madeinUSA—but the letters state that FTC staff has reviewed information which suggests the companies may be importing the products, in whole or significant part.
The letters go on to state that unless companies can adequately substantiate that “all or virtually all” of a product was made in the USA, their claims may violate the law and result in an enforcement action in which the FTC seeks redress for injured consumers and/or the imposition of civil penalties of up to $53,088 per violation.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, promised to “hold accountable any company that undermines Americans’ trust with misleading or outright false U.S. origin claims.” If you haven’t evaluated whether you can substantiate your “Made in the USA” claims recently, now may be a good time to do that.
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