As FTC Increases Enforcement of Made in USA Claims, Companies Should Prepare for More Regulatory Attention

April 16, 2026

On March 13, 2026, the Trump administration issued an executive order directing the Federal Trade Commission (FTC) to prioritize enforcement actions against unlawful Made in USA statements, signaling heightened scrutiny of country-of-origin representations. In the wake of this directive, on April 14, 2026, the FTC announced enforcement actions and settlements involving three companies alleged to have made unqualified and unsubstantiated Made in USA claims. With increased FTC enforcement, companies should review their labeling practices and prepare for increased regulatory attention.

FTC Directed to Prioritize Enforcement

The executive order makes enforcement of Made in USA claims an agency priority and directs the FTC to bring actions against sellers or manufacturers that falsely claim their products are “Made in USA” or make similar unsubstantiated American-origin claims. While the executive order signaled heightened enforcement, it did not otherwise alter the substantive legal standard for such claims. The FTC’s Made in USA Labeling Rule (16 C.F.R. Part 323) requires a product advertised as “Made in USA” be “all or virtually all” made in the United States and establishes that companies are subject to civil penalties if they include “Made in USA” labels that fail to meet that standard, including in catalogs or online.

The executive order also put online marketers on notice of their potential role in verifying Made in USA claims, directing the FTC to consider proposed regulations that would require online marketers to verify country-of-origin claims or risk violating the FTC Act.

FTC Demonstrates Commitment to Enforcement

On April 14, 2026, the FTC announced three enforcement actions. As part of these actions, the FTC reached settlements with sellers of American flags and flagpole display kits, entertainment systems for home and commercial use, and footwear products, resolving allegations in separate federal lawsuits that Made in USA claims violated federal law.

The FTC further announced that it resolved two investigations with companies that had been under investigation for making unqualified Made in USA claims that purportedly did not comply with the FTC standard. Based on each company’s remedial actions and commitment to future compliance, FTC staff issued letters closing these investigations.

Class Action Risk

In addition to increased enforcement activity by the FTC, class action plaintiffs’ lawyers also remain prevalent in the space, bringing claims based on Made in USA labeling across industries. These claims often target express “Made in USA” labels, as well as implied claims such as use of the American flag in marketing materials.

Takeaways for Companies

Given the emphasis on enforcement actions and class action lawsuits, companies should expect increased scrutiny and should audit all “Made in USA,” “Made in America,” or similar claims to ensure accuracy and FTC compliance.

McGuireWoods is monitoring activity related to Made in USA claims, For questions, contact one of the authors or a member of the Antitrust & Trade Regulation Practice Group.

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