The U.S. Federal Trade Commission (FTC) published its final rule regarding "Made in the USA" claims1 on July 14, 2021. The rule does not impose any new requirements on businesses. Instead, it codifies the FTC's longstanding enforcement policy statement regarding U.S.-origin claims2. By codifying this guidance into a formal rule, FTC can impose penalties for non-compliance. The rule applies to product labels and promotional materials associated with direct sales of a product, including electronic and written promotional materials. The rule prohibits marketers from including unqualified "Made in the USA" claims on labels and promotional materials unless:final assembly or processing of the product occurs in the United States;all significant processing that goes into the product occurs in the United States; andall or virtually all ingredients or components of the product are made and sourced in the United States. The rule allows a marketer to seek an exemption where evidence shows that an unqualified "Made in the USA" claim is not deceptive and/or complies with alternative requirements designed to prevent fraud.
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