As litigators who regularly advise clients on product regulatory and advertising issues, we are often surprised by the number of experienced marketers who are unaware of what Made in the USA or similar monikers on product labeling actually mean. Many mistakenly equate Made in the USA claims with qualified Manufactured in the USA or Assembled in the USA claims. However, these claims are vastly different and equating the two can lead to disastrous consequences, including regulatory actions, challenges by competitors, and consumer class action lawsuits. 

On March 13, 2026, President Trump issued an Executive Order (the Executive Order) prioritizing enforcement of unlawful Made in the USA claims. As a result, we thought it would be timely to briefly revisit the Federal Trade Commission’s (FTC) Made in the USA standard and Labeling Rule before discussing the impact of the Executive Order. 

THE FTC MADE IN THE USA LABELING RULE

In August 2021, the FTC finalized its Made in USA Labeling Rule (the Labeling Rule or Rule).¹ The Labeling Rule codified the “all or virtually all” standard for Made in the USA claims made on product labeling. Under the Rule, marketers may make such claims only if:

1. the final assembly or processing of the product occurs in the United States,
2. all significant processing that goes into the product occurs in the United States, and, importantly,
3. all or virtually all ingredients or components of the product are made and sourced in the United States. Violators of the Rule are subject to civil penalties.

THE EXECUTIVE ORDER

The Executive Order doesn’t change the FTC standard or Labeling Rule. Rather, it requires Andrew Ferguson, Chair of the FTC, to prioritize enforcement actions “in cases in which a seller’s or manufacturer’s claim that a product is ‘Made in America’ or ‘Made in the U.S.A.,’ or any similar American-origin claims, constitutes a violation of law.” For online sales, the Executive Order requires “FTC to consider issuing proposed regulations providing that the failure of an online marketplace to establish procedures for verifying country-of-origin claims may constitute an unfair or deceptive act or practice under the Federal Trade Commission Act.” Finally, all agencies overseeing government-wide acquisition contracts are instructed to periodically review and verify Buy American Act, Country of Origin USA, or similar American-origin claims associated with products acquired through these contracts. For government contractors or vendors found to misrepresent the American-origin status of products sold to the government, the relevant products must be removed from government procurement availability, and the contractors or vendors of these products shall be reported to the Department of Justice, which may pursue actions against them under the False Claims Act. 

CALIFORNIA’S MADE IN THE USA LABELING LAW

Importantly, the FTC is not the only regulatory body with jurisdiction over Made in the USA claims. For example, California has its own Made in the USA labeling law, which generally allows Made in the USA claims on products containing foreign parts or ingredients, provided that no more than 5% of the “final wholesale value of the manufactured product” is derived from foreign parts or ingredients. Under the law, the permissible amount of foreign parts or ingredients increases to 10 percent if the manufacturer can show that the foreign content cannot be produced or obtained in the United States, irrespective of cost.

WHY COMPLIANCE MATTERS

To be sure, making country of origin claims is enticing to most marketers. However, complying with state and federal standards and regulations requires complex analyses and constant vigilance, particularly given the potential for component part or ingredient supply chain disruptions requiring shifts in procurement to foreign suppliers. While the Executive Order hasn’t yet drastically changed the compliance landscape, it has increased the scrutiny that will be applied to country of origin claims and the potential for regulatory action should those claims be deemed unlawful. And if FTC enforcement isn’t enough to keep marketers making unlawful country of origin claims awake at night, they are reminded that, as sure as the day is long, where there’s regulatory action, consumer class action lawsuits will follow.