Recent “Made in USA” enforcement actions show that U.S.-origin claims continue to be an active enforcement priority for the Federal Trade Commission (FTC). On April 14, the FTC announced three enforcement actions and the closure of two investigations involving companies alleged to have overstated the domestic origin of their products. The announcement followed a March 13 Executive Order (the “EO”) calling for heightened scrutiny of purportedly false “Made in America” representations.

Background on Made in USA Labeling Rule and Exacting Standard for Made in USA Claim

The FTC’s Made in USA Labeling Rule codifies the agency’s longstanding “all or virtually all” standard. As a general matter, the rule prohibits unqualified “Made in USA” claims unless final assembly or processing occurs in the United States, all significant processing takes place in the United States, and all or virtually all ingredients or components are of U.S. origin. The rule’s scope extends beyond traditional packaging to include seals, marks, tags, and stamps used in print or electronic sales materials, including catalogs and online marketing that depict a product label.

The EO directed the chairman of the FTC to prioritize enforcement actions where a seller’s or manufacturer’s representation that a product is “Made in America,” “Made in the U.S.A.,” or any similar American-origin claims violates applicable law.

The EO characterized truthful “Made in America” advertising as both a consumer-protection imperative and a way to support businesses that make genuine investments in U.S. manufacturing.

Enforcement Actions Target Misleading Origin Marking

The FTC announced the following actions involving companies alleged to have deceived U.S. consumers through false or misleading claims and labeling.

First, the FTC sued TouchTunes Music Company, LLC, alleging that the company marketed electronic dartboards for residential and commercial use as “Made in the USA” despite the use of numerous foreign-made components, including components essential to product functionality such as computer chips, cameras, and flat-screen monitors. Although final assembly reportedly occurred in the United States, the FTC alleged that TouchTunes made multiple unqualified U.S.-origin claims across its website and other marketing materials. To resolve these allegations, TouchTunes stipulated to a proposed order requiring $625,000 in consumer redress, imposing restrictions on future misleading or unsubstantiated country-of-origin claims, and requiring the company to notify consumers of the settlement. This is the largest monetary recovery to date under the Made in USA Labeling Rule.

Second, the FTC brought an action against Americana Liberty LLC, Three Nations LLC, and certain principals, for improperly marketing American flags, U.S. military flags, patriotic flag display products, and related accessories using unqualified claims such as “Made in the USA,” “All-American Made,” “100% Made in the USA,” “100% American Made Tough,” and “Built by Americans for Americans.” According to the government, several of these products were wholly imported from China, while others incorporated significant or essential foreign components from China. The FTC alleged that the parties disseminated these claims through their corporate websites, digital marketing, and other marketing materials. The FTC further alleged separate violations of the Textile Fiber Products Identification Act and associated Textile Rules based on purportedly false country-of-origin representations and the failure to provide required disclosures for certain flag products. The proposed settlement includes $167,743 in consumer redress, prohibits future misleading or unsubstantiated origin claims, requires compliance with applicable textile labeling disclosure requirements, and mandates that the parties notify consumers about the settlement.

Third, the FTC sued Oak Street Manufacturing Company, LLC, doing business as Oak Street Bootmakers, alleging that the company falsely represented that certain boots, loafers, moccasins, and other footwear were “handcrafted 100%” in the United States, that the “entire product” was made domestically “from heel-to-toe, using no pre-assembled components from overseas” and that the products were “More than Made in USA.” According to the FTC, beginning in May 2023, Oak Street manufactured the upper portions of certain footwear at a facility in the Dominican Republic, sourced outsoles from Brazil, and, in some instances, performed additional “bottoming” processes in the Dominican Republic rather than completing final assembly in the United States. The proposed settlement includes $75,000 in consumer redress and prohibits future misleading or unsubstantiated country-of-origin claims.

In the second and third actions, the enforcements followed a warning letter issued by the FTC last July expressing concerns about the companies’ “Made in USA” claims.

Closing Letters Allowed Companies to Conclude Investigations With Agreement to Take Corrective Action

In addition to the three enforcement actions and related settlements, the FTC issued closing letters to two companies that had been under investigation for making unqualified “Made in the USA” claims that allegedly lacked adequate substantiation.

According to the FTC, acrylic product and custom display manufacturer Marketing Holders LLC and trailer manufacturer Lamar Trailers, Inc. each agreed, following engagement with FTC staff, to revise certain U.S.-origin representations and implement measures designed to bring their practices into alignment with the FTC’s “Made in USA” standard. In light of these corrective measures and each company’s stated commitment to future compliance, FTC staff closed the investigations.

The letters do not constitute a clearance of past conduct, however, as the FTC expressly reserved the right to continue monitoring the companies’ conduct and to pursue further enforcement action if warranted.

FTC Scrutiny Appears to Be Expanding

Taken collectively, these matters demonstrate that the FTC is scrutinizing U.S.-origin claims across the full spectrum of marketing channels, extending well beyond product packaging labels to include websites, digital ads, and broad product-line claims. Companies that rely on patriotic or U.S.-origin branding should carefully assess the accuracy of their claims to ensure they meet the FTC standards.

Please contact the authors if you have any questions.