FTC Finalizes Order Requiring Made in the USA Brand to Verify or Disclose Self-Certified Seals

The Federal Trade Commission issued a final order on November 10, 2014, settling charges that Made in the USA Brand, LLC let companies use its “Made in USA” certification seal without checking whether their products were actually made in the USA.

What the FTC alleged

According to the FTC complaint, the Columbus, Ohio, company introduced its seal in 2009 and registered it as a certification mark in 2010. It charged $250 to $2,000 for a one-year license, depending on the licensee’s annual sales.

The company’s standard was the FTC’s own policy that products labeled “Made in USA” must be “all or virtually all” made in the USA. But the FTC said the company granted licenses to any company that certified itself and paid the fee. It did not audit licensees, and it “has never rejected an application to use its Certification Mark and has never terminated any licensee’s use,” the complaint states.

What the order requires

• The company may not say a company or product meets its standard unless a party with no material connection to that company has independently and objectively confirmed it, or the seal and promotional materials clearly disclose that companies may self-certify.
• It may not make unsupported claims that a product is made in the USA or any other country.
• The order runs for 20 years.

The company neither admitted nor denied the allegations. The FTC first announced the proposed settlement in July 2014 by a 5-0 vote and took public comments before making it final without changes.

The FTC later took similar action over another Made in USA seal (our coverage).