FTC Cracks Down On False “Made In The USA” Claims

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The Federal Trade Commission (FTC) recently announced law enforcement actions involving three companies that falsely claimed that their products were made in the United States.

Made in the USA

The “Made in the USA” labeling rules were enacted to prevent deceptive advertising and ensure customers can make informed purchasing choices. The concept of labeling products with the correct country of origin dates all the way back to the McKinley Tariff Act in 1890, and Congress and federal agencies have updated “Made in the USA” rules over the years.

FTC Jurisdiction

The FTC is charged with preventing deception and unfairness in the marketplace. Under the FTC Act, the Commission may bring legal action against “false or misleading claims that a product is of U.S. origin”. The agency is authorized to issue a civil penalty of up to $40,654 per violation.

The FTC has issued guidance on complying with the “Made in the USA” standard, most recently in 2021. View the latest guidance here.

When Can I Say Made in the USA?

For a product to be considered as “Made in the USA” without qualification, that product must be “all or virtually all” made in the U.S. How the Commission determines whether a product is “all or virtually all” made in the U.S. is by looking at whether there was “a ‘reasonable basis’ to support the claim at the time it is made”. To prove the “reasonable basis” standard, a manufacturer or marketer must provide “competent and reliable evidence” to the FTC.

A qualified Made in the USA claim must describe “the extent, amount or type of [its] domestic content or processing”. This allows the consumer to know “that the product isn’t entirely of domestic origin”. The FTC warns that qualified claims can be tricky, so it is best to “avoid qualified claims unless the product has a significant amount of U.S. content or U.S. processing”.

For a complete understanding of the FTC’s Made in the USA standard, take a look at “Complying with the MADE IN USA STANDARD”.

“All or Virtually All” Made in the USA

To say that a product is “all or virtually all” made in the USA, the FTC requires that “the product’s final assembly or processing must take place in the U.S.”. If any of the products contain any foreign content within the final product, then it would be inappropriate to label them as “Made in the USA”.

The FTC also looks at other factors to determine the “all or virtually all” claim. Those factors are:

“How much of the product’s total manufacturing costs can be assigned to U.S. parts and processing; AND
How far removed any foreign content is from the finished product”.

It is important to note that if a company violates the FTC’s rule on “Made in the U.S.A.”, then that company could be handed down “a civil penalty of up to $53,088” per violation.

President Trump Executive Order

On March 13, 2026, President Trump signed an Executive Order titled: “Ensuring Truthful Advertising of Products Claiming to be Made in America.” The order directed the Chairman of the FTC to prioritize enforcement actions against sellers and manufacturers who falsely claim their products are “Made in America” or make similar American-origin claims in violation of existing law.

FTC Enforcement Actions

On April 14, 2026, the FTC announced that the agency reached settlements with three companies resolving allegations in separate federal court complaints that these sellers violated the law by making unqualified and unsubstantiated “Made in USA” claims.

TouchTunes

The FTC sued TouchTunes Music Company, LLC (TouchTunes), alleging in a complaint that the company falsely claimed its electronic dartboards, sold for both residential and commercial use, were “Made in the USA.”

To resolve these allegations, TouchTunes stipulated to a proposed order that:

Provides $625,000 towards consumer redress under Section 19 of the FTC Act, the largest for a Made in USA Labeling Rule case to date;
Prohibits misrepresentations regarding U.S.-origin claims;
Prohibits misleading or unsubstantiated country-of-origin claims; and
Requires TouchTunes to provide notice to consumers of the settlement with the FTC.

Americana Liberty and Related Parties

As a follow-on to a July 8, 2025, warning letter issued by FTC staff, the FTC brought an enforcement action against Americana Liberty LLC and Three Nations LLC, as well as the companies’ principals—Maximiliano Ojeda, Virginia Hilfiger, and Julian Groves—alleging that they falsely advertised and labeled patriotic flag display and related products as “Made in the USA.” To resolve these allegations, defendants stipulated to a proposed order that:

Provides $167,743 towards consumer redress;
Prohibits misrepresentations regarding U.S.-origin claims;
Prohibits misleading or unsubstantiated country-of-origin claims;
Requires certain disclosures concerning textile fiber products; and
Requires defendants to provide notice to consumers of the settlement with the FTC.

Oak Street

The FTC took action against Oak Street Manufacturing Company, LLC, alleging that the company falsely claimed that certain boots, loafers, moccasins, and other footwear products were “handcrafted 100%” in the United States; the “entire product” was made in the U.S. “from heel-to-toe, using no pre-assembled components from overseas”; and that their footwear products were “More than Made in USATM.”

To resolve these allegations, Oak Street stipulated to a proposed order that:

Provides $75,000 towards consumer redress;
Prohibits misrepresentations about its products or services, including representations regarding U.S.-origin claims; and
Prohibits misleading or unsubstantiated country-of-origin claims.

Contact Diaz Trade Law for Assistance with Labeling, Including “Made in the USA” Compliance

Companies making “Made in the USA” claims should carefully evaluate whether their products and marketing materials comply with FTC requirements and other applicable labeling regulations. Misleading origin claims can expose businesses to enforcement actions, penalties, reputational harm, and consumer lawsuits. Diaz Trade Law assists companies with product labeling reviews, country of origin compliance, advertising claims, import considerations, and broader customs and trade compliance matters.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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