The government sent warning letters to four companies that claim their consumer goods are of US origin, reminding them to comply with the FTC’s “Made in USA” requirements. The Federal Trade Commission also sent letters to Amazon and Walmart regarding third-party sellers “who appear to be making deceptive “Made in USA” claims about their products on those online marketplaces.”
“Companies that falsely claim their products are ‘Made in the USA’ can expect to hear from the FTC,” the FTC chairperson warned in a press release about the matter.
The FTC sent warning letters to a flagpole retailer; a footwear maker; a football equipment company; and a personal care products manufacturer according to its press release this week, and it warned that “the FTC Act and the Made in USA Labeling Rule require that products advertised as “Made in the USA” must be “all or virtually all” made in the United States.”
According to the July 8 press release, the FTC identified sellers it suspected of violating the law:
“The FTC also sent letters to Amazon and Walmart, explaining the FTC’s “Made in USA” requirements and how they apply to online marketplaces. The letters also identify third-party sellers who may be making deceptive U.S.-origin claims on those online marketplaces. In each letter, the FTC points out that such claims may violate the FTC Act and run afoul of the platform’s specific terms of service.”
The FTC has a FAQs page on the FTC.gov website, where it explains it does not only apply to express claims, but also to implied claims, and provided the following example of the latter:
Example: A company promotes its product in an ad that features a manager describing the “true American quality” of the work produced at the company’s American factory. Although there is no express representation that the company’s product is made in the U.S., the overall — or net — impression the ad is likely to convey to consumers is that the product is of U.S. origin.
The FTC also warned sellers and marketplaces about the consequences of violating its rules:
“Companies that violate the FTC Act and the MUSA Labeling Rule may be subject to legal action including the issuance of an administrative subpoena, the filing of a federal lawsuit, injunctive relief, and civil penalties or other monetary relief.”