Key Takeaways
• A new executive order reinforces the Federal Trade Commission’s (FTC) Made-in-USA labeling rule, holding advertisers accountable for false or misleading claims.
• To legally claim “Made in USA,” products must have all or virtually all parts, processing and final assembly originate in the U.S.
• The order spotlights gaps between FTC rules and the less stringent Buy American Act, increasing exposure for companies selling to government agencies.
With America250 celebrations and the 2026 World Cup only a few months away, suppliers and distributors are increasingly focused on Made-in-USA products. But not all domestic products are created equally, and some vendors are making fraudulent claims saying products were made in America when that’s not fully the case.
A new executive order aims to change that. Last week, President Trump issued an order that would hold advertisers accountable for making false claims around Made-in-USA labeling.
In 2021, the Federal Trade Commission (FTC) issued its Made-in-USA labeling rule, thereby prohibiting the use of Made-in-USA or Made-in-America labeling on products that do not meet the standard.
“Marketers need to be ready to show all or virtually all parts and processes are of U.S. origin, all the way back to raw materials,” Julia Solomon Ensor, a counsel of the Advertising & Media Industry Group at law firm Reed Smith told Counselor.
In other words, the final assembly, all significant processing and all components or...
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