The Trump administration declared “Made in America” to be “an economic and national security priority of this Administration” and has taken steps through tariffs and other means to encourage American manufacturing. Companies have responded by considering their options to increase manufacturing, production and other capabilities in the U.S. But while it may be a popular buzz line, companies must be careful before marketing or labeling their products to consumers as “Made in America.”
A Made in USA or Made in America marketing logo or product label can be a key benefit of U.S. manufacturing, but whether and how companies can take advantage of that benefit is less clear. The U.S. Federal Trade Commission (FTC), charged with enforcing false advertising, has issued rules and guidance and brought cases related to Made in USA labeling and marketing. Strong FTC enforcement is expected to continue under the Trump administration, as FTC Chairman Andrew Ferguson declared to Congress that the FTC “will vigorously pursue marketers making false ‘Made in USA’ claims.”
The key enforcement avenue for the FTC is its Made in USA Labeling Rule, issued in 2021. The rule states that a product may not be labeled as Made in America unless “all or virtually all” of the product is made in the United States including the product’s components or ingredients and the work done to create the product. The “all or virtually all” standard also applies to claims made in marketing and advertising, as described in the FTC’s Enforcement Policy Statement on U.S. Origin Claims.
As a result, companies conducting manufacturing or processing in the United States must assess the components or ingredients that make up the product before labeling or marketing the product as Made in America. If companies source even a relatively small amount of the components or ingredients outside the U.S., they are unable to avail themselves of the designation. If products do not meet that standard, companies may be able to craft “qualified” Made in USA claims, such as “Assembled in the U.S.” and “Made in America of domestic and foreign components.” Qualified claims must accurately describe the extent, amount or type of the product’s U.S.-sourced content or processing.
Companies similarly must be careful when making Made in USA claims in marketing materials and on social media. Such claims also must meet the “all or virtually all” standard or be properly qualified. Broad marketing claims on company websites or in marketing materials must be accurate for all the companies’ products or for the subset of products that a consumer would consider the marketing claim to cover. This may mean that companies must qualify broad marketing claims even if some of their products can support an unqualified Made in USA designation.
