The Federal Trade Commission held a public workshop on “Made in USA” and other USA origin claims on September 26, 2019. The agency asked for input on how consumers read these claims and whether its enforcement approach should change. One FTC official said “all ideas are on the table.”
The current standard
The FTC’s 1997 Enforcement Policy Statement on U.S. Origin Claims had not been amended since it was issued. Under the policy, an unqualified Made in USA claim must be supported by evidence that “all or virtually all” of the product is made in the USA.
What panelists said
- Consumer Reports said eight in ten Americans prefer to buy a product if it is made in the USA.
- The Alliance for American Manufacturing urged the FTC to keep the “all or virtually all” standard. The American Apparel & Footwear Association said the standard needs clearer definition.
- Panelists disagreed on qualified claims. Richline Group called them hard to use, while TruthInAdvertising.org said consumers value more information.
- Several participants said that by bringing only a handful of cases each year, the FTC leaves many unsupported claims unchallenged.
Options on the table
- Changing its litigation strategy to seek larger remedies or admissions in consent agreements.
- Starting a rulemaking to replace the policy with a formal rule that would let the FTC seek civil penalties.
The FTC accepted public comments through October 11, 2019. It later proposed a Made in USA Labeling Rule in 2020 and finalized it in 2021.
FAQ
When was the workshop?
September 26, 2019, in Washington, D.C.
What standard applies to unqualified claims?
A product must be “all or virtually all” made in the USA.
What change did the FTC consider?
A formal rule that would allow civil penalties for false claims.
Source & credit
Source: The National Law Review, October 2, 2019: “FTC Workshop Explores ‘Made in USA’ Policy and Enforcement Options”.