In the past few weeks, the Federal Trade Commission (FTC) has made it clear to companies and online sellers: if you say your products are “Made in the USA,” you need to be 100% sure that’s true.
Four different companies in various industries—including flag makers, shoe makers, sports equipment companies, and personal care brands—got formal warning letters after the FTC found they were lying about where their products were made.
The agency also talked to Amazon and Walmart about similar false claims made by sellers who list products on their websites.
This isn’t just a single case.
It’s part of a bigger plan by regulators to make sure businesses are honest about what they say, especially when it could affect how customers trust and spend money. For any seller, whether you’re a big brand or just starting out, knowing these rules is really important.
Why “Made in the USA” Is So Heavily Regulated
American-made labels matter a lot to shoppers. Studies show that many people are ready to spend more on products made in the U. S. , because they think these items are better quality, made with fair labor, and help local workers.
That’s why the FTC pays close attention to these claims.
According to the agency’s “Made in USA” Labeling Rule, you can only say a product is “Made in the USA” if it is mostly made in the U. S. This means almost all the important parts, steps in making, and final putting together should happen here.
Some sellers think just finishing the last part in the U.
S. or using some materials made here is enough. But that’s not true. The FTC looks at both clear claims, like labels or boxes that say “Made in the USA,” and hidden ones too. Even words like “true American quality” or “USA proud,” or pictures of American flags, can be misleading if the product doesn’t meet the standard.
What Makes This Enforcement Action Different
The latest warnings show that regulators are looking beyond just the companies that make products. Now, they are also checking online stores and the sellers who sell their items there. When the FTC contacted Amazon and Walmart, it meant that these platforms might have to help watch for and stop false or misleading information.
For online sellers, this is a big reminder.
You can’t rely on large marketplaces to handle your compliance problems for you. You also can’t use phrases like “Made in USA” just for marketing without thinking about what they really mean.
The Stakes Are Higher Than Many Realize
If the FTC finds out you made a false claim about a product being made in the U. S. , there can be serious consequences. Companies might have to pay fines, settle lawsuits, or face legal action. Besides the legal and money problems, there’s also harm to customer trust. Once people find out a brand lied about its products, it’s hard to regain their confidence.
A lot of businesses don’t realize how long and noticeable these claims can be.
If you’ve ever used words like “American-made” in product descriptions, ads, or social media posts, that language could still be found and used against you months or even years later.
How Sellers Can Protect Their Brands
Dealing with these rules doesn’t have to feel too hard, but you need to take action early. Begin by checking all places where your product’s origin is mentioned—like labels, boxes, website text, ads, and product listings on marketplaces.
If you make your product in the US, keep good records to back up your claims.
These documents should indicate where every component originates, where the product is assembled, and how much of the overall cost originates in US-based work.
If your product involves a large amount of parts or processing from other countries, go slow on any wording that might suggest it’s made in the US.
It is generally better to use specific words like “designed in the USA” instead of making a generic “Made in the USA” statement.
Why This Matters for the Future of Ecommerce
Why This Matters for the Future of Ecommerce
The actions of the FTC reveal a larger shift: regulators are more seriously considering consumer protection in the age of online shopping.
Sellers must now support each and every statement they make, whether it’s the safety of a product or its environmental-friendliness.
As the net gets increasingly busier, being upfront and honest isn’t merely a question of complying with the law—it also assists businesses in becoming more visible.
Firms that provide transparent and honest information are likely to establish robust, enduring relationships with customers.
Conclusion: Time to Audit Your Claims
The spate of recent warning letters demonstrates that “Made in the USA” is not a label that you can simply casually apply to your advertising. It’s a claim that has serious legal and reputational consequences if abused.
If you have not done so already, now is the time to review your product descriptions, packaging, and marketing copy.
Pay particular attention to every word—yes, even those that appear to be subtle—since they may be interpreted as misleading.
