“Made in the U.S.A.” isn’t just a feel-good phrase anymore. If your product says, “Made in USA,” you’re playing in a regulated space, and there can be serious consequences if you don’t play by the rules. The Federal Trade Commission (FTC) primarily enforces these rules under Section 5 of the FTC Act, and Congress has directed that “Made in USA” labels must be consistent with FTC decisions and orders. Under the FTC’s Made in USA Labeling Rule, an unqualified “Made in USA” claim is lawful only if three things are true:
- Final assembly or processing occurs in the United States;
- All significant processing happens in the United States; and
- All or virtually all components or ingredients are made and sourced in the United States.
What Does the FTC’s “All or Virtually All” Standard Mean for “Made in USA” Claims?
There’s no bright-line percentage; the FTC weighs factors such as the share of total manufacturing costs tied to U.S. parts and processing, how far removed any foreign content is from the finished product, and how important the foreign content is to the product’s function. Even small foreign inputs can be a problem if they are essential to how the product works or represent a disproportionate part of cost. By contrast, foreign inputs that are early-stage, meaningfully transformed in the U.S., and not significant to the finished product’s essence may still allow for an unqualified claim. For many products, the safer path is a qualified claim—e.g., “Made in USA with imported materials” or “Made in USA of U.S. and imported parts”—backed by substantiation of significant U.S. content or processing. Minimal U.S. steps, like simple assembly, generally won’t support broad qualified claims and have drawn recent FTC enforcement and civil penalties. So, qualifying your claim does not mean that you are free of any further FTC scrutiny.
How FTC “Made in USA” Rules Differ from Customs and Other Origin Requirements
It’s also easy to confuse different origin rules. U.S. Customs’ country-of-origin rules (substantial transformation under 19 C.F.R. § 134.1) determine the appropriate marking for import purposes and can deem a product U.S.-origin after U.S. cutting and assembly, however the FTC’s advertising/labeling standards will nevertheless independently apply to “Made in USA” marketing claims. Textile fiber products have additional, mandatory country-of-origin disclosures under the Textile Fiber Products Identification Act and FTC Textile Rules, and any foreign fiber content must be clearly disclosed unless the FTC’s “all or virtually all” standard is met.
Legal Considerations for “Made in Louisiana” Claims
Locally, manufacturers must also be mindful of Louisiana law: the Louisiana Unfair Trade Practices and Consumer Protection Law (LUTPA) prohibits deceptive practices, and misleading geographic claims can create risk even if federal “USA Label” rules don’t directly apply to a state-focused phrase. While “Made in Louisiana” is not governed by the federal USA Label Act, Section 5 of the FTC Act still polices deceptive origin messages, and Louisiana jurisprudence treats misrepresentation and deception as actionable under LUTPA.
How Manufacturers Can Comply with FTC “Made in USA” Labeling Requirements
These practical next steps will help conscientious businesses stay compliant:
- Map your full supply chain and bill of materials and document where each component is made and every processing step. Simply checking one or two links in the chain often is not enough.
- Keep cost breakouts for U.S. versus foreign inputs and processing and make it a regular practice to review and update this origin information whenever sourcing or processing changes. The FTC expects reasonable due diligence that looks far enough back to catch significant foreign content, and you shouldn’t assume that parts purchased from a U.S. supplier are entirely U.S.-made. By maintaining substantiation files with supplier certifications and internal analyses ready for review so that if an issue arises, the company will be in a better position to defend itself in the event of an investigation or lawsuit.
- Choose precise wording that matches your proof and use clear qualifiers when appropriate. Before you print that label, confirm your sourcing and processing facts end-to-end and get tailored guidance on whether your claim should be unqualified or clearly qualified. Our experienced attorneys at Gordon Arata are always willing to help with your “Made in the U.S.A.” questions.
To learn more, please contact Ethan Zubic at ezubic@gordonarata.com or Elizabeth McGovern at emcgovern@gordonarata.com.
Ethan Zubic is a commercial litigator who represents clients in a broad range of disputes, including real estate, land use and zoning, environmental matters, construction, contract issues, and business organization litigation.
Elizabeth McGovern is an associate attorney and commercial litigator who represents clients in banking and finance, energy and natural resources, telecommunications, environmental, and transportation.