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- Is that product really made in the USA? FTC cracks down on deceptive claims</p>
<p>Bailey Schulz, USA TODAYJuly 10, 2025 at 3:05 AM</p>
<p>Surveys show Americans love American-made products. Problem is, that "Made in USA" tag might not always be accurate.</p>
<p>The Federal Trade Commission has been cracking down on false or unsubstantiated marketing around such claims in recent years, forcing some companies to pay thousands, if not millions, of dollars for misleading consumers.</p>
<p>That crackdown continues in July, which the FTC has dubbed "Made in the USA" month. On July 8, the agency sent warning letters to four companies reminding them to comply with labeling requirements. Amazon and Walmart also received letters regarding third-party sellers who appear to be making deceptive claims.</p>
<p>"Consumers want to have confidence that when they buy something labelled 'Made in the USA' they are actually supporting American workers and the American economy," FTC Chairman Andrew Ferguson said in a July press release. "Companies that falsely claim their products are 'Made in the USA' can expect to hear from the FTC."</p>
<p>A barcode label with "Made In U.S.A." written on it is pictured on a plastic tote in San Diego, California, on January 29, 2014.What does 'Made in USA' mean?</p>
<p>The FTC says a company must make "all or virtually all" of its product in the U.S. to advertise it as "Made in USA."</p>
<p>That could mean that the final assembly or processing takes place in the U.S., or that all "significant" processing takes place in the U.S. Products with "all or virtually all" components made and sourced in the U.S. also qualify, according to the FTC's website.</p>
<p>It's a "flexible measure" that takes into account things like how much of the product's manufacturing costs are U.S.-based and how important foreign inputs are to the final product's form or function, according to Kathleen Benway, a partner at law firm Alston and Bird and a former chief of staff at the FTC's Bureau of Consumer Protection. Determining whether a product is truly made in the U.S. can be tricky, she said, and is often determined on a case-by-case basis.</p>
<p>Companies that mislabel their products could face a hefty fine from the FTC.</p>
<p>In 2023, Instant Brands – which manufactures Pyrex-brand kitchen and home products – was ordered to pay a $129,416 fine after the FTC said it falsely claimed Chinese-made products sold on Amazon were "Made in USA."</p>
<p>More recently, home products company Williams-Sonoma in 2024 was charged with a $3.2 million civil penalty after the FTC said it listed multiple products made in China and other countries as being made in the U.S. It was the largest civil penalty in a "Made in USA" case to date.</p>
<p>A number of similar cases have come on the heels of the agency finalizing the Made in USA Labeling Rule in August 2021, which makes it possible for the FTC to levy civil penalties against companies not in compliance.</p>
<p>Benway expects the FTC to continue to pursue similar cases, especially since they align with the Trump administration's efforts to bring back more manufacturing to the U.S.</p>
<p>"The false or misleading 'Made in the USA' claim has long been a focus of the FTC. So this isn't necessarily something new. They've been the cop on the beat for a very long time," Benway said. But "I definitely see this being a priority of the Ferguson-led FTC."</p>
<p>Do Americans prefer products made in the US?</p>
<p>A "Made in USA" label can be an attractive selling point for consumers.</p>
<p>About three-fourths of U.S. consumers say they prefer American-made goods, especially in the aftermath of COVID-19-era supply-chain disruptions, according to a May report from Integris, an IT service provider that works with manufacturers across the country.</p>
<p>"There can be some patriotism associated with it, but also a recognition that products may be more environmentally friendly because they travel a shorter distance from factory to shelf, or that they're a higher quality," said Phyllis Marcus, vice president of the BBB National Programs' National Advertising Division.</p>
<p>A "Made in USA" label is pictured on the back of a tie Medford, Massachusetts January 29, 2014.</p>
<p>To what degree that preference influences spending is another question. Nearly two-thirds of consumers said they weigh factors like quality and price more in their purchasing decisions, according to Integris.</p>
<p>Overall, the Commerce Department estimates that as of 2023, about half of what Americans purchased was "made in America." This includes purchases from consumers, businesses and governments.</p>
<p>But Benway warned it can be difficult for consumers to tell deceptive marketing from the legitimate "Made in USA" products.</p>
<p>"To some degree, they're at the mercy of the marketers," she said. "That's why it's important for the FTC to continue with enforcement action and to provide guidance to companies."</p>
<p>One sign shoppers can watch out for is a label marking the supposedly "made in USA" product as imported. In that case, Benway said consumers should file a complaint with the FTC.</p>
<p>This article originally appeared on USA TODAY: FTC cracks down on deceptive 'Made in USA' claims</p>
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