Under its general authority to act against deceptive acts and practices, the Federal Trade Commission (FTC) controls ‘Made in America’, ‘Made in the USA’, or any claims of U.S. origin for all products sold or advertised in the United States.
The FTC Act, § 45a Labels on products, states that a product advertised or offered for sale with a ‘Made in USA’, “Made in America’, or equivalent label must have domestic origins that are consistent with orders and decision of the FTC. FTC has provided a policy statement requiring that ‘all or virtually all’ of a product be made in the United States to make the unqualified claim. Any product labeled with an unqualified ‘Made in the USA’ claim or similar must be able to have that claim substantiated.
A product that is ‘all or virtually all’ made in the United States will be one in which all significant parts and processing that go into the product are of U.S. origin and the product contains negligible foreign content.
The commission looks at a number of factors when making a determination if this requirement has been met, including that final assembly or processing of the product takes place in the United States, the portion of the product’s total manufacturing costs that are attributable to U.S. parts and processing; and how far removed from the finished product any foreign content is. Foreign content incorporated early in the manufacturing process will often be less significant than content that is a direct part of the finished product.