Introduction: A Label That Can Make or Break Your Business in 2025
For decades, “Made in USA” has been e-commerce’s most potent designation. It resonates with American consumers’ confidence, nationalism, and faith in local quality. Amazon and Walmart sellers have employed it—occasionally genuinely, occasionally not—as an effective conversion driver.
But in 2025, everything is different. The U.S. Federal Trade Commission (FTC) is going hard after deceptive “Made in USA” claims, and they’re not sending warnings to sellers alone—they’ve openly warned Amazon and Walmart. This change isn’t something to read between the lines about. It’s a warning that enforcement is going to turn a lot more serious, and that sellers who abuse this claim are risking genuine financial and operational penalties.
Why “Made in USA” Works—And Why It’s a Target
To most customers, “Made in USA” is not just a tagline—it’s a guarantee. It suggests that the item keeps jobs in the community, upholds high manufacturing practices, and follows tougher safety and quality regulations. In cutthroat markets, this statement can tip the purchasing decision toward you, particularly when customers are already wary of cheap foreign imports.
But since it’s so potent as a marketing tool, it has also been so much abused. Sellers have put American flags on their primary image, included “Made in USA” in their titles, or incorporated it into bullet points—sometimes when the only part done domestically was packaging or final assembly. It made it difficult to distinguish between truth and lies, undermining consumer trust.
The FTC’s 2025 Enforcement Shift
While the FTC has always had rules around “Made in USA” claims, enforcement in the past often meant warnings or settlements with individual brands. 2025 marks a new era. The Commission has issued formal warning letters to both Amazon and Walmart, effectively telling them: police your sellers, or face consequences yourself.
This is important because when regulators hold platforms responsible, those platforms typically respond with stricter seller requirements. We’ve seen it before with product safety regulations, pesticide claims, and hazmat materials—Amazon and Walmart will often overcompensate to protect themselves. That means sellers should expect tighter listing rules, proactive audits, and even retroactive enforcement on past claims.
What “Made in USA” Really Means—The Legal Standard
According to the FTC’s Made in USA Labeling Rule, a product can be called “Made in USA” only if it is mostly or entirely made in the United States. That definition is tighter than many retailers understand.
To make the cut, everything—raw material, manufacturing, assembly, and final processing—must take place domestically. Even if the smallest but most significant component of your product is made or processed abroad, the claim is out of bounds.
For instance, if you import cloth from a foreign nation but sew garments in the U.S., technically, you cannot claim “Made in USA.” The best you can do is claim “Sewn in USA from imported fabric.” It may appear insignificant to you, but not to the FTC.
How Sellers Have Been Abusing the Claim
On Amazon and Walmart, many sellers have been getting away with questionable “Made in USA” labels because the platforms don’t (yet) require proof during listing creation. Common tactics include:
- Using a U.S. business address or LLC to appear domestic.
- Adding flags or “USA” overlays on main images without evidence.
- Claiming “Made in USA” when only packaging or assembly happens domestically.
While these tricks may have gone unchecked in the past, the FTC’s recent letters signal that the era of casual enforcement is over.
The Real-World Consequences in 2025
The risks are now far more than a slap on the wrist. The FTC can impose civil penalties of up to $43,792 per violation, and because each listing can be counted separately, the financial damage could be enormous. Add to that the possibility of Amazon or Walmart suspending your account, removing your listings, or holding back disbursements, and it’s clear that even a single false claim could put your business at risk.
Beyond legal penalties, there’s also the reputational cost. Once buyers lose trust, regaining it is much harder than winning it in the first place.
How Sellers Can Stay Compliant—and Competitive
This enforcement isn’t an excuse to drop “Made in USA” claims entirely—it’s an excuse to do them properly. This is how you can defend your business:
Audit Your Listings – Go through all the products that contain “Made in USA” language, imagery, or tags. Cut anything you can’t source.
Collect Documentation – Have supplier invoices, manufacturing certificates, and statements of origin readily available in case the platforms ask for them.
Utilize Correct Alternatives – If your product is not completely qualifying, use phrases such as “Assembled in USA” or “Designed in USA,” but only when they’re accurate.
Head Off Policy Changes – Amazon and Walmart will likely roll out mandatory submission of proof for origin claims. Being proactive will enable you to stay ahead of frantic competitors trying to get into compliance.
Conclusion: Honesty Is Now a Business Advantage
The FTC’s 2025 crackdown is not just a regulatory refresh—it’s a realignment of the way trust works in e-commerce. As platforms move to stricten standards, sellers who do business in an open manner and are able to demonstrate their assertions will be above the fray.
If your products really are made in the U.S., this may be one of your most valuable differentiators. If not, the best thing to do is to get honest about your supply chain now—before regulators, platforms, or customers make you.
In the long term, compliance isn’t simply about staying out of trouble—it’s about creating a brand that customers trust. And in a market where trust sells, that’s more valuable than any badge.
