FTC Sharpens ‘Made in the USA’ Enforcement With New Warning Letters

Key Takeaways

• FTC Sends Eight Warning Letters: Seven companies received warnings over apparent "Made in the USA" claims, while one was warned over products marketed as "Made in Texas" despite indications the products were imported wholly or in significant part.
• Executive Order Driving Enforcement: The action follows President Donald J. Trump's March executive order directing the FTC to prioritize unlawful "Made in USA" advertising claims.
• Recent Settlements Show Escalation: The warning letters build on April settlements involving American flag products, footwear, and electronic dartboards, where companies agreed to stop unlawful claims and provide consumer redress.
• Competition Is Also at Stake: The FTC says enforcing origin claims protects not only consumers but also manufacturers that have invested in domestic production and accurately advertise their products.

Deep Dive

The U.S. Federal Trade Commission on Monday issued warning letters to eight companies whose advertising appears to overstate where their products were made. Seven companies were told their products may have been falsely marketed as "Made in the USA," while another received a warning over products advertised as "Made in Texas," despite indications they were imported, either entirely or in significant part.

The products span a broad cross-section of manufacturing, from drums and industrial laser machinery to coordinate measuring machines and e-cigarettes. The FTC did not announce enforcement actions against the companies, but the warning letters make clear that the agency expects businesses to bring their marketing into compliance.

"When Americans spend their hard-earned dollars on goods marketed as 'Made in the USA,' they deserve to have confidence that these products were all or virtually all made in this country," Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection, said in announcing the action. "We will hold accountable any company that undermines Americans' trust with misleading or outright false U.S. origin claims."

A Policy Becoming an Enforcement Agenda

The latest warnings are not an isolated action. They fit into a broader shift that has steadily elevated country-of-origin claims on the FTC's enforcement agenda. In March, President Donald J. Trump signed the executive order Ensuring Truthful Advertising of Products Claiming to be Made in America, directing the Commission to prioritize enforcement against unlawful "Made in USA" claims. Monday's warning letters represent another step in carrying out that directive.

The Commission has already demonstrated that these cases do not necessarily stop with a warning. In April, it announced settlements with three companies accused of making unlawful "Made in USA" claims involving American flag products, footwear, and electronic dartboards. Those settlements resolved alleged violations of Section 5 of the FTC Act, Section 45a, and the Made in USA Labeling Rule. The companies agreed to stop making the challenged claims and pay redress to injured consumers.

That progression, from executive direction to settlements and now additional warning letters, suggests the FTC intends to maintain sustained pressure on misleading origin claims rather than treat them as isolated cases.

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