The fact that the Federal Trade Commission (“FTC”) has been active over the last two-plus years is far from breaking news. While it has gained tremendous attention for its relatively new interest in certain big issues—e.g., “dark patterns,” consumer privacy, and non-competition agreements—it also has not forgotten about longer-standing priorities. Specifically, the FTC remains steadfast in is pursuit of manufactures and marketers for allegedly misleading customers into believing their products are "Made in USA" when they are largely assembled abroad or contain foreign-made components.
Recent enforcement actions should serve as a reminder to retailers and manufacturers alike to ensure their practices satisfy the FTC’s strict standard.
Background of the “Made in the USA” Rule
For more than 30 years, the FTC has advised against using “Made in USA” labeling claims unless “all or virtually all” of the product’s components are made and sourced domestically. Throughout that time, the FTC has brought numerous enforcement actions against companies for allegedly misrepresenting that products or their components are made domestically. Historically, these enforcement actions were brought under Section 5 of the FTC Act, which prohibits “unfair or deceptive acts or practices in or affecting commerce.”
On July 14, 2021—just months after the Supreme Court in AMG Capital Management v. Federal Trade Commission effectively held the FTC lacks authority “to seek, [or] a court to award,...
Washington, April 27 Prominent television hosts and journalists have pushed back against online claims that the White House ... Washington, April 27 Prominent television hosts and journalists have ...