Federal Trade Commission Turns up the Heat on “Made in USA” Claims with upto $2 Million Fines

The Federal Trade Commission is putting companies on notice that if you lean on Made in USA as a selling point, you need to be able

Federal Trade Commission Turns up the Heat on “Made in USA” Claims with upto $2 Million Fines
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Federal Trade Commission Turns up the Heat on “Made in USA” Claims with upto $2 Million Fines

Credit: Federal Trade Commission

The Federal Trade Commission is putting companies on notice that if you lean on Made in USA as a selling point, you need to be able to prove it, or face real financial and reputational risk. In July 2025, the agency warned brands and online marketplaces that it is intensifying enforcement of its Made in USA Labeling Rule, issuing warning letters and highlighting record penalties to drive compliance.

What The FTC Requires For “Made in USA” Claims

Under the Made in USA Labeling Rule, an unqualified Made in USA claim is only lawful when all three conditions are met: final assembly or processing happens in the United States, all significant processing occurs in the United States, and all or virtually all ingredients or components are made and sourced in the United States.

If a product does not fully meet those standards, brands must use qualified claims (for example, stating that…

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