MADE IN USA: FEDERAL TRADE COMMISSION GUIDELINES AND RISK FOR BUSINESS

MADE IN USA: FEDERAL TRADE COMMISSION GUIDELINES AND RISK FOR BUSINESS

05 September 2025

In the United States, foreign companies frequently use the “Made in USA” statement as a marketing tool to encourage domestic consumers to purchase products that are manufactured, wholly or partially, within the United States

 

From a regulatory perspective, this statement – whether made in a qualified form (i.e., accompanied by additional clarifications) or in an unqualified form – constitutes an actual claim primarily governed at the federal level and subject to oversight by the Federal Trade Commission (FTC), the federal agency responsible for consumer protection and the regulation of unfair or deceptive commercial practices. Since any claim may mislead consumers and distort fair competition, it must be truthful and consistent with the specific factual circumstances.

“Made in USA” claims may be explicit when they expressly refer to the U.S. origin of the product (e.g., “Made in USA” or “Our products are American made”), or implicit when they indirectly suggest such origin, either alone or in combination with phrases or images, typically through the use of symbols or geographic references (e.g., the American flag). In both cases, the use of a “Made in USA” claim, whether qualified or unqualified, does not require prior authorization from the FTC. Consequently, a company may, in principle, use any claim provided that it is truthful and substantiated. Nevertheless, the use of inaccurate or misleading claims may trigger enforcement proceedings, the severity of which depends on the gravity, duration, and possible repetition of the contested conduct. In particular:

• in the event of a first violation, the FTC may issue a cease and desist letter requiring the company to discontinue the non-compliant claim or provide evidence supporting its accuracy;
• if the company voluntarily complies, the FTC may still publish an official statement regarding the enforcement action taken, which often results in significant reputational damage for the company concerned; and
• where the violation is repeated, the company may be subject to civil monetary penalties and, in the most serious or persistent cases, criminal proceedings that may even lead to imprisonment of company executives or directors.

In addition to the sanctions mentioned above, businesses must also consider the reputational harm that may arise from a non-compliant claim, as well as the potential initiation of product recall procedures.

Although the “Made in USA” claim represents a competitive advantage for foreign businesses – since U.S. consumers are generally more inclined to purchase domestic rather than foreign products, particularly in the industrial sector – improper use of such claims may expose companies to significant risks. It is therefore essential for Italian businesses wishing to promote the American origin, in whole or in part, of their products to seek qualified preventive legal advice in order to mitigate the risk of possible disputes and protect the reputation and credibility of their brand in the U.S. market.

 

Daniele Ferretti, Attorney-at-Law admitted to practice in Italy and the State of New York, and Rosalie Anne Proto, Attorney-at-Law admitted to practice in Italy.

 

The information contained in this article is provided for general informational purposes only and does not constitute, and is not intended to constitute, legal advice or any other form of professional advice. The content does not take into account the specific circumstances of any individual case and should not be relied upon as a basis for making decisions without obtaining appropriate professional advice.