The Federal Trade Commission finalized its Made in USA Labeling Rule in 2021. This rule prohibits the use of “Made in the USA” or “Made in America” claims when a product fails to meet the legal made-in-the-USA standard, which mandates that the product is:

  • “All or virtually all” made in the United States.
  • Made using American-made components and ingredients.

Companies can be subject to stiff penalties if they use an unqualified “Made in the USA” claim for a product that is not “all or virtually all” made in the United States. The rule applies to product labels, as well as any marketing materials.

On Friday, President Donald Trump issued an executive order to increase enforcement of these rules, particularly online. The order directs the Federal Trade Commission to draft regulations for online retailers to verify that goods advertised as “Made In America” are in fact made in the USA, stating that, “American citizens attempting to buy American products should have certainty as to what American-origin claims mean.”


How To Determine Whether A ‘Made in USA’ Label Is Accurate

It’s critical to understand the difference between express and implied “Made in the USA” claims, particularly for products that don’t meet the requirements for an unqualified “Made in the USA” claim.

  • Express claims are straightforward, like “Made in USA” or “American made.”
  • Implied claims are trickier. The FTC assesses the context and overall impression conveyed to consumers. For example, a U.S. flag used with other phrases or images on a product page or package could be considered a claim of U.S. origin, even if there is no explicit representation that the product is made in the USA.


While a manufacturer doesn’t need to seek approval from the FTC before making a “Made in the USA” claim, it helps to know what criteria the commission uses to determine whether a product is “all or virtually all” made in the U.S.

Three important questions to ask when choosing how to label a product:

  • Did the product’s final assembly or processing take place in the U.S.?
  • How much of the product’s total manufacturing costs can be assigned to U.S. parts and processing?
  • How far removed is any foreign content from the finished product (i.e. raw materials versus ready-to-use component parts)?
  • Were any foreign costs necessary for the essential form or function of the product?


For example, an American company may produce watches at a plant in the U.S. using mostly U.S. parts and labor. But if the essential parts that enable the watch to keep time – its core function – are imported, the company can only make a qualified claim, such as “Made in USA with Swiss movement” – even if those parts account for a fraction of the overall cost of the product.

An “Assembled in the USA” label may offer a more accurate alternative for products where substantial principal assembly takes place in the U.S. using imported parts, and it still highlights the role of American workers in the process.

Guidance From The FTC

The FTC released a Complying with the Made in USA Standard guidance to help clarify the rules. Here are five key takeaways:

  • Manufacturers should only make “Made in the USA” claims they know they can support with data.
  • Parts purchased from U.S. suppliers weren’t necessarily made in the USA.
  • Companies that falsely label their products may be liable for civil penalties, as well as consumer restitution.
  • Ask the FTC for help via email at musa@ftc.gov.
  • If a company isn’t playing by the rules, report it to the FTC at ReportFraud.ftc.gov.

Companies can be subject to stiff penalties if they use an unqualified ‘Made in the USA’ claim for a product that is not ‘all or virtually all’ made in the United States.