FTC warns companies over misleading 'Made in USA' claims

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Andrew N. Ferguson Chairman | Federal Trade Commission

FTC warns companies over misleading 'Made in USA' claims

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The Federal Trade Commission (FTC) has issued warning letters to four companies regarding claims that their products are made in the United States. The FTC also reached out to Amazon and Walmart concerning third-party sellers on their platforms who may be making deceptive "Made in USA" claims.

FTC Chairman Andrew N. Ferguson emphasized the importance of accurate labeling, stating, "'Made in the USA' is not just a slogan – it’s a sign that a product connects us to the workers and businesses that make America great." He added, "Consumers want to have confidence that when they buy something labelled 'Made in the USA' they are actually supporting American workers and the American economy."

The companies receiving warning letters include Americana Liberty, Oak Street Manufacturing, LLC, Pro Sports Group LLC, and USA Big Mountain Paper Inc. The FTC highlighted that under the FTC Act and the Made in USA Labeling Rule, products advertised as "Made in the USA" must be "all or virtually all" manufactured in the country. Companies found violating these rules may face legal actions such as subpoenas, lawsuits, or penalties.

Amazon and Walmart were also informed about third-party sellers potentially making misleading U.S.-origin claims. The FTC clarified how its requirements apply to online marketplaces and pointed out potential violations of platform terms of service.

Throughout July, the FTC is focusing on ensuring compliance with its "Made in USA" requirements. It offers guidance for adhering to these standards.

The Federal Trade Commission's mission includes promoting competition while protecting and educating consumers. They provide resources at consumer.ftc.gov for learning more about consumer topics or reporting fraudulent activities at ReportFraud.ftc.gov.

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