July 9, 2021

FTC’s New Rule Aims To Crack Down On False “Made In The USA” Labels

Lori Kalani, Bernard Nash

Cozen O'Connor

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Cozen O'Connor

The Federal Trade Commission(“FTC”) finalized the Made in the USA Labeling Rule, which codifies the FTC’s long-standing enforcement policy statement regarding false, unqualified U.S.-origin claims.
The rule applies to labeling claims and prohibits marketers from including unqualified “Made in the USA” claims on product labels unless: (1) final assembly or processing occurs in the United States; (2) all significant processing for creating the product occurs in the United States; and (3) all or virtually all ingredients or components of the product are made and sourced in the United States.
The rule also codifies a broader range of remedies against marketers who make false U.S.-origin claims, including enabling the FTC to seek civil penalties of up to $43,280 per violation of the rule as well as allowing the FTC to seek redress, damages, and other penalties.

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