The FTC is designating July as “Made in America Month,” and manufacturers in all industries should understand the restrictions they face when marketing their products as produced in the US. The Trump Administration’s tariffs will drive manufacturing further onshore and will increase the perceived value of marketing products as Made in the USA, in turn driving increased scrutiny of such claims. The consequences for not complying with the FTC’s Made in the USA rules can be steep, including potential penalties of up to $50,120 per violation (for 2025) and a heightened risk that a competitor will sue for damages under § 43(a) of the Lanham Act.
The requirements for an unqualified Made in the USA label or advertisement are nominally straightforward: the product or service must be finally assembled or processed in the U.S., all significant processing must occur in the U.S., and “all or virtually all” ingredients or components of the product must be made and sourced in the U.S. As applied, the requirements contain more nuance, particularly around the “all or virtually all” and processing standards. For example, very small amounts of foreign-sourced content in a final product may not eliminate the possibility of an unqualified Made in the USA claim, but not if that foreign content is essential to the function of the final product. Additional complexity lies in the interaction between Made in the USA rules and the labeling rules for imported products enforced by Customs and Border Protection.
The FTC has published guidance for industry in its document “Complying with the Made in the USA Standard.” Additional guidance is available on the FTC’s Made in USA webpage. Vedder Price’s Antitrust & Trade Regulation attorneys can help you navigate these and other requirements; contact the author or the Vedder Price attorney with whom you normally work.