Before you put Made in America on your products, use caution. You may think your products qualify, but they may not, according to new standards established by the Federal Trade Commission.
In the past several years, the commission has started cracking down on manufacturers claiming their products are made in America when they’re made abroad. In some cases, companies faced huge penalties for not complying with the FTC rules.
According to the FTC: “Made in USA means that ‘all or virtually all’ the product has been made in America. That is, all significant parts, processing and labor that go into the product must be of U.S. origin. Products should not contain any — or should contain only negligible — foreign content.”
That’s the definition of an “unqualified claim.” The FTC also has established a “qualified claim,” which must include a disclaimer, such as “Made in USA with U.S. and imported components.”
In addition to labels, the FTC prohibits manufacturers from making untrue, misleading or unsubstantiated country-of-origin claims in marketing materials about any product or service. (See Made in USA: Ask the Expert for a more detailed explanation.)
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