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 a product is assembled in the USA with imported materials) that clearly and accurately describe the amount and type of U.S. content. The rule applies to explicit phrases like Made in USA and to implied origin claims that lean on U.S. flags, maps, or place names in a way that suggests full domestic origin.
July 2025: Warning Letters And Marketplace Pressure
“‘Made in the USA’ is not just a slogan – it’s a sign that a product connects us to the workers and businesses that make America great,” said FTC Chairman Andrew N. Ferguson. “Consumers want to have confidence that when they buy something labelled ‘Made in the USA’ they are actually supporting American workers and the American economy. Companies that falsely claim their products are ‘Made in the USA’ can expect to hear from the FTC.”
Soon after, the FTC sent warning letters to four companies, flagpole maker Americana Liberty, furniture producer Oak Street Manufacturing, sports surface supplier Pro Sports Group, and paper products firm USA Big Mountain Paper, flagging questionable Made in USA representations and reminding them of their obligations under the rule.
Crucially, the FTC also contacted Amazon and Walmart about allegedly deceptive origin claims made by third party sellers on their platforms, signaling that marketplaces are expected to monitor, identify and correct misleading Made in USA listings, not just police their own private label products. Legal analysts note that this may be the start of broader marketplace level accountability around origin claims.
Penalties Are Getting Steeper
Violations of the Made in USA Labeling Rule are treated as unfair or deceptive acts under Section 5(a) of the FTC Act, and civil penalties can exceed $50,000 per violation depending on the case. In January 2024, the FTC announced a $2 million civil penalty against Kubota North America Corporation for mislabeling imported replacement parts as Made in USA, the largest sanction for MUSA violations to date.
Regulators found that Kubota had continued to ship parts fully manufactured overseas in packaging that still claimed U.S. origin, despite a prior 1999 order over similar conduct. The repeat nature of the violations and the failure to update packaging factored into the severity of the penalty, underscoring that prior enforcement history significantly increases risk.
A Rising Tide Of Class Actions
Beyond regulatory exposure, brands are also facing more private litigation over Made in USA messaging. According to reporting cited by legal commentators, there were 13 class actions targeting origin claims in the first half of 2025, compared to 7 in all of 2024. Only 5 of 80 tracked MUSA class actions since 2011 have been dismissed, with no jury verdicts in favor of defendants, statistics that make these cases particularly risky to fight.
This increases the importance of aligning creative, sourcing, and legal review to ensure that flags, USA callouts, and copy don’t overstate domestic content.
What Brands And Retailers Should Do Now
Audit all origin claims. Review packaging, hangtags, product pages, social content, and marketplace listings for unqualified Made in USA language or imagery that could imply full domestic origin.
Tighten marketplace controls. If you sell via Amazon, Walmart, or similar platforms, ensure internal processes (and, where possible, platform settings) minimize inaccurate origin fields and quickly correct any flagged listings.
Invest in cross functional training. Make sure design, merchandising, marketing and e commerce teams understand what all or virtually all means under the FTC standard so that origin claims and creative stay aligned with reality.With warning letters, record penalties, and an uptick in class actions, the FTC’s message is clear: Made in USA is a high trust claim that must be earned, and brands that get it wrong may pay for it twice, in fines and in lost consumer confidence.
