FTC Considering “Made in the USA” Rule

September 30, 2020: FTC Considering “Made in the USA” Rule

The Federal Trade Commission is considering a proposal to, in effect, codify more than 20 years of enforcement decisions into a broadly-applicable rule setting out when sellers can make unqualified claims that a product is "Made in the USA."

The proposed rule, designed to deter deceptive claims and provide marketers with certainty as to the agency's enforcement approach, would prohibit marketers from making unqualified Made in the USA claims on labels unless (1) final assembly or processing of the product occurs in the US, (2) all significant processing that goes into the product occurs in the US, and (3) all or virtually all ingredients or components of the product are made or sourced in the US. All three criteria must be present to make an unqualified Made in the USA claim.

The new regulation is expected to take effect next year, however at this writing, an implementation date has not been set. NAMM will continue to monitor and report on this issue. Text of the proposed rule.