FTC prioritizes "Made in the USA" advertising rules: Compliance considerations

The Federal Trade Commission (FTC) continues to prioritize enforcement of “Made in the USA” claims, primarily through the FTC Act and the Made in USA (MUSA) Labeling Rule – both of which require that marketing materials accurately reflect the domestic content of goods marketed as being made in the United States.

The agency declared July 2026 as “Made in the USA” Month and issued warning letters to seven companies on July 6, 2026 that it believes may have misrepresented products as “Made in the USA.”

The warning letters were issued to companies selling products such as drums, industrial laser machinery, coordinate measuring machines, and e-cigarettes. The action highlights the ongoing work of the FTC to ensure products claimed to be made in the US are actually supporting American workers, manufacturing, and communities.

Businesses making advertising claims about the origin of their goods are encouraged to ensure the accuracy of their marketing claims. Government investigations are high-stakes matters that require careful management and can lead to substantial fines and penalties.

Legal framework: FTC Act and the MUSA Labeling Rule

The FTC enforces both Section 5 of the FTC Act, which prohibits deceptive advertising, and the MUSA Labeling Rule, which sets specific requirements for unqualified US-origin marketing claims.

The key legal requirement for unqualified MUSA claims – i.e., claims in advertisements that the advertised product is "Made in the USA," "American-made," "Crafted in USA," or anything similar – is that the product held out as being made in the US is "all or virtually all" made in the US.

According to the FTC, this means that:

• Final assembly or processing of the product occurs in the US,
• All significant processing of the product takes place in the US, and
• All or virtually all of the ingredients or components of the product are also made and sourced in the US.

Qualified claims, i.e., claims that a product is "Made in USA with Imported Materials," "Assembled in USA," “Built in the USA with Global Materials,” or any similar language, can be permissible if truthful, not misleading, and adequately substantiated.

The claims must, however, accurately describe the extent of the domestic content or processing. The FTC’s MUSA Labeling Rule applies not only to physical product labels, but also to online marketing materials that display seals, marks, tags, or stamps indicating US origin.

A substantiated violation of the MUSA Labeling Rule can result in significant exposure, including civil penalties of up to $53,088 per violation; injunctive relief, including permanent injunctions prohibiting any further misleading statements; and other monetary remedies.

Compliance and risk management considerations

The current policy focus on domestic manufacturing has brought MUSA advertising claims under renewed scrutiny, and the FTC has signaled a willingness to rigorously pursue companies making unsubstantiated or false MUSA claims.

In response, companies making MUSA claims are encouraged to review their operations to ensure that all claims of origin are truthful, not misleading, and otherwise comply with the MUSA Labeling Rule. Failure to do so may increase the risk of a time and resource-intensive government investigation that may result in significant penalties.

For more information, please contact the authors or your DLA engagement partner.