TINA.org Petitions FTC for a Made in USA Rule With Civil Penalties

Consumer advocacy group Truth in Advertising (TINA.org) filed a petition on August 22, 2019, asking the Federal Trade Commission to adopt a formal rule for Made in USA claims.

The argument

• No penalties for first offenses: The FTC’s Made in USA guidance came from a policy statement, not a binding rule. Without a rule, the agency cannot seek civil penalties for a first-time violation. TINA.org wrote that a violator who is caught “typically gets a free pass.”
• Weak enforcement tools: The petition said most cases end with a closing letter. The rest usually end in a settlement with no admission of fault and no money paid. Neither, it said, deters false claims. It cited the Sandpiper/Piper Gear USA matter as an example of egregious abuse.
• Unused authority: TINA.org noted that Congress gave the FTC authority to issue Made in USA rules about 25 years earlier, but the agency had never used it.

The petition asked the FTC to codify its standard that a product with an unqualified Made in USA claim must be “all or virtually all” made in the USA.

What followed

The FTC held a Made in USA workshop on September 26, 2019, covered in our workshop post. It proposed a rule in June 2020 (our post) and finalized the Made in USA Labeling Rule in July 2021 (our post).

FAQ

What did TINA.org ask for?

A formal FTC rule for Made in USA claims, which would let the agency seek civil penalties for first-time violations.

Why did a rule matter?

The FTC’s guidance was a policy statement. Without a rule, the FTC generally could not seek penalties unless a company broke an existing order.

Did the FTC adopt a rule?

Yes. It finalized the Made in USA Labeling Rule in July 2021.