FTC proposal codifying “Made in USA” standard extends enforcement to online advertising, and enhances enforcement capabilities

The Federal Trade Commission (FTC) on 22 June 2020 voted to adopt regulations codifying its long-standing Enforcement Policy Statement on U.S. Origin Claims (Policy Statement). The proposed regulations come after the FTC staff held a workshop in September 2019 to discuss "Made in USA" (MUSA) claims and whether there was a need to update the policy or enforcement approach for such claims. While the proposed regulations make no substantive changes to the "all or virtually all" standard articulated in the Policy Statement, they significantly expand enforcement of MUSA claims to include both offline and online MUSA claims and authorize the use of civil penalties, which could lead to more frequent and enhanced enforcement by the FTC. Comments to the proposed rule are due 60 days after publication of the proposed regulations in the Federal Register.

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