“Made in America”: Compliance, Risks & Enforcement

A lot of manufacturers are already stretched thin trying to keep up with tariffs, sourcing shifts, supplier volatility, and increasing scrutiny at the border. The last thing most teams want is another enforcement risk hiding in marketing copy. But that is exactly what Made in America claims have become.

For many companies, this goes beyond a branding issue. If you are telling customers a product is made in the United States, you need to be able to prove it. And with the White House now calling for stronger enforcement, the risk of getting it wrong is rising. 

What “Made in America” Actually Means

The Federal Trade Commission (FTC) is the main U.S. agency responsible for stopping deceptive or unfair claims in the marketplace, including false claims that a product is of U.S. origin. For decades, the FTC took the position that a claim like “Made in USA” should be used only when a product is “all or virtually all” made in the United States. The agency formalized that approach in its 1997 Enforcement Policy Statement on U.S. Origin Claims, then strengthened it in 2021 by finalizing the Made in USA Labeling Rule, which allows civil penalties for non-compliant, unqualified labeling claims. 

In practical terms, that means final assembly or processing should take place in the United States, and virtually all significant parts, processing, and inputs should be domestic as well. The FTC also looks beyond the literal words on the page. Alternative phrasings, flags, maps, patriotic imagery, and other marketing cues can all create a U.S.-origin claim if they give consumers that overall impression.

Which Products Can Use a Made in America Claim?

Not every product advertised in the United States is barred from making a U.S.-origin claim. But companies should not assume that U.S. assembly alone is enough. For an unqualified claim, the FTC expects the product to meet the “all or virtually all” standard. If a product contains significant imported content, a qualified claim may be more appropriate, such as explaining that it is assembled in the United States with imported parts.

There are also category-specific rules outside the FTC’s general framework. The FTC notes that textile, wool, fur, and automobile claims may be subject to separate origin-labeling requirements.

California Raises the Bar

California adds another wrinkle. Under the California Business and Professions Code section 17533.7, products sold or offered for sale in California generally cannot use “Made in USA,” “Made in America,” “USA,” or similar wording if the merchandise or any article, unit, or part was entirely or substantially made outside the United States. The statute includes limited safe harbor thresholds for foreign content of up to 5% of final wholesale value, or up to 10% if the manufacturer can show the foreign content could not be sourced domestically and that the decision was not based on cost. That is more prescriptive than the FTC’s more flexible “all or virtually all” analysis, which does not use a fixed percentage threshold.

Why Enforcement Is Increasing Now

On March 13, 2026, the White House issued an executive order directing the FTC to prioritize enforcement against false Made in America and similar U.S.-origin claims. The order also calls on agencies with relevant country-of-origin authority to review whether additional action is needed. For manufacturers, the message is straightforward: Unsupported U.S.-origin claims are likely to face more attention. 

That direction builds on an already active enforcement environment. In July 2025, the FTC sent warning letters to four companies over potentially deceptive Made in USA claims, and also contacted Amazon and Walmart about third-party marketplace sellers using similar claims online.

What Enforcement Looks Like in Practice

The FTC has not treated this as a theoretical issue.

In 2024, Williams-Sonoma agreed to pay a record $3.175 million civil penalty for violating a prior FTC order after the agency alleged the company advertised some foreign-made products as made in the United States.

In 2021, Resident Home, parent company of Nectar Sleep, agreed to pay $753,000 after the FTC alleged DreamCloud mattresses were marketed as using 100% U.S.-made materials even though the products were finished overseas and in some instances wholly imported. 

Also in 2021, Chemence and its president were ordered to pay $1.2 million after the FTC alleged their glue products carried deceptive unqualified Made in USA claims despite significant imported inputs.

What Companies Should Do Now

The safest approach is to treat Made in America claims like any other compliance effort: Gather the data, validate it, document it, and review it before the claim is made.

That means understanding where final assembly occurs, identifying the country of origin of parts and materials, evaluating whether substantial imported content is present, and making sure marketing language matches what the evidence actually supports. It also means reviewing claims across labels, websites, e-commerce listings, catalogs, and distributor content rather than treating them as separate workstreams.

How Assent Helps

Companies can no longer claim Made in America based on a general sense that a product is mostly domestic. Between the FTC’s standard, California’s stricter statutory framework, recent enforcement actions, and the March 2026 executive order, manufacturers should assume the burden of proof matters just as much as the claim itself.  

Defensible Made in America claims depend on current, traceable origin documentation. Assent’s Country of Origin module collects and maintains documentation for goods classification and country of origin declarations, among other key data points needed to keep up with trade compliance requirements. 

See for yourself how Assent supports your Made in America and other trade compliance efforts. Talk to one of our experts today.