FTC Issues First Made in USA Closing Letters Since New Labeling Rule

FTC staff sent closing letters on November 18, 2021, to five companies whose marketing may have overstated how much of their products were made in the United States. They were the first such letters since the FTC adopted its Made in USA Labeling Rule in July 2021.

The letters went to Netbrands, Electric Mirror, Vinotemp International, Designing Fire of South Dakota and Attic Breeze. In each case, staff closed the inquiry after the company removed or qualified its USA origin claims. No penalties were sought.

What each company did

• Electric Mirror makes LED mirrors in Everett, Washington, but its products use significant imported parts. It updated its website, social media and printed marketing.
• Attic Breeze assembles solar attic fans in the USA with significant imported parts. It put stickers over old claims on packaging, ordered new packaging with qualified claims and told its distributors about the changes.
• Vinotemp assembles some wine coolers in the USA but also sells a line of wholly imported products. It removed unqualified USA origin claims.
• Designing Fire fire tables use imported tops, and some accessories are wholly imported. It removed unqualified claims and had dealers update their marketing.
• Netbrands sells some USA products alongside imports. It clarified its claims and fixed missing origin disclosures required by the Textile Act.

The rule behind the letters

Since August 13, 2021, the rule has barred labeling a product “Made in the United States” unless final assembly and all significant processing happen in the USA and all or virtually all of its parts are made and sourced in the USA. The FTC can seek civil penalties of up to $43,792 per violation.

The letters also said a company may make truthful claims about a specific process, such as “Designed” in the USA, as long as the claim does not imply the whole product is USA-made.

“FTC staff members are available to work with companies to craft claims that serve the dual purposes of conveying non-deceptive information and highlighting work done in the United States.”

FTC staff closing letter to Designing Fire

FAQ

Which companies received the letters?

Netbrands, Electric Mirror, Vinotemp International, Designing Fire of South Dakota and Attic Breeze.

Did the FTC fine them?

No. Staff closed each inquiry after the company changed its marketing.

What is the penalty under the rule?

The FTC can seek civil penalties of up to $43,792 per violation.