FTC intensifies crackdown on deceptive “Made in USA” claims

USA – The Federal Trade Commission (FTC) has declared July 2025 as “Made in the USA” Month, signaling a renewed focus on enforcing accurate labeling. 

On July 8, the FTC issued warning letters to four companies, urging compliance with its 2021 Made in USA Labeling Rule, which mandates that products labeled as American-made must be “all or virtually all” produced in the U.S. 

The agency also targeted retail giants Amazon and Walmart, addressing deceptive claims by third-party sellers on their platforms, including products like whiskey glasses and pasta utensils.

“‘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,” FTC Chairman Andrew Ferguson said in a statement. 

He emphasized that accurate labeling ensures consumers can confidently support American workers and manufacturers. 

The FTC’s letters to Amazon and Walmart stressed the need to monitor and correct misleading claims, which may violate federal law and the retailers’ own codes of conduct.

The FTC’s actions align with growing consumer preference for American-made goods, as surveys indicate shoppers value domestic products. 

However, not all products meet the stringent “all or virtually all” standard, which requires final assembly, significant processing, and nearly all components to be U.S.-sourced. Non-compliance can lead to severe penalties, as seen in a US$3.17 million fine against Williams-Sonoma last year for violating a prior FTC order.

A recent report highlights a surge in class action lawsuits targeting false “Made in USA” claims, with 13 cases filed in the first half of 2025, nearly double the total for 2024. 

The National Advertising Division, a self-regulatory body, has also seen increased disputes over such claims, particularly as tariffs drive interest in domestic manufacturing.

In a related development, a July 2025 article from Retail TouchPoints noted that consumer interest in American-made products has spiked amid trade tensions and new tariffs under President Trump’s policies. 

According to reports, Google searches for “Made in USA” have doubled since January 2025, with 43% of Americans reporting increased interest in these goods.

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