The Federal Trade Commission’s (FTC) long-standing rule on labeling products as “Made in USA” is that all (or virtually all) of the components in the product are made in the United States. In 2020, the FTC revisited its Made in USA standard because of a rise in fraudulent Made in USA claims or labeling on products that did not the FTC’s standard. On July 14, 2021, the FTC issued its Final Rule on Made in USA Labeling Rule and it can be found at: https://www.govinfo.gov/content/pkg/FR-2021-07-14/pdf/2021-14610.pdf?utm_source=federalregister.gov&utm_medium=email&utm_campaign=subscription+mailing+list. The rule is effective August 13, 2021.
Although the FTC Final Rule does not impose new requirements for Made in USA labelling, it prohibit sellers from making unqualified “Made in USA” claims on labels unless:
- final assembly or processing of the product occurs in the U.S.,
- all significant processing that goes into the product occurs in the U.S., and
- all or virtually all ingredients or components of the product are made and sourced in the U.S.
See, 86 Fed. Reg. at 37023 (the top of the left column). The rule’s definition of “label” extends beyond labels physically affixed to a product and may include labels appearing online, which is important for any e-commerce business. For more guidance on the FTC’s Made in USA rules, please see the FTC’s website at: https://www.ftc.gov/news-events/media-resources/tools-consumers/made-usa
Please note that the FTC’s Made in USA Labeling Rule is different from U.S. Customs and Border Protection’s (CBP) country of origin rules, so you will need to confer with a trade compliance professional as you seek to export your product to other countries which will use customs rules to determine country of origin and marking.
