ARTICLE
14 July 2021

FTC's New Rule Aims To Crack Down On False "Made In The USA" Labels

The Federal Trade Commission("FTC") finalized the Made in the USA Labeling Rule, which codifies the FTC's long-standing enforcement policy statement regarding false, unqualified U.S.-origin claims.
United States Consumer Protection
  • The Federal Trade Commission("FTC") finalized the Made in the USA Labeling Rule, which codifies the FTC's long-standing enforcement policy statement regarding false, unqualified U.S.-origin claims.
  • The rule applies to labeling claims and prohibits marketers from including unqualified "Made in the USA" claims on product labels unless: (1) final assembly or processing occurs in the United States; (2) all significant processing for creating the product occurs in the United States; and (3) all or virtually all ingredients or components of the product are made and sourced in the United States.
  • The rule also codifies a broader range of remedies against marketers who make false U.S.-origin claims, including enabling the FTC to seek civil penalties of up to $43,280 per violation of the rule as well as allowing the FTC to seek redress, damages, and other penalties.

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