Made in USA Claims: What Businesses Need to Know

Consumer trends indicate that people care about where products are made and whether goods are “Made in the USA.” But strict advertising requirements and a wave of legal challenges have turned the “Made in USA” label into a battleground. In just the first half of 2025, over a dozen class-action lawsuits over "Made in USA" claims have emerged, a big increase from the previous year, in addition to the rising government.

Here’s what businesses need to know about “Made in USA” product claims.

FTC Legal Standard for “Made in USA” Claims

The FTC enforces a strict standard: to market a product as “Made in USA,” it must be “all or virtually all” made in the U.S. In practical terms, that means:

• The final assembly or processing happens in the U.S.

• All significant processing occurs stateside.

• The vast majority or entirety of component parts or ingredients come from America.

• If a product contains more than a negligible amount of foreign content, it likely doesn’t meet the standard.

The Federal Trade Commission (FTC) recently issued a warning to companies to comply with the “Made in USA” standard. This follows a statement by the FTC Chair on this issue as well as a number of government enforcement actions relating to “Made in USA” and similar claims.

Qualified vs. Unqualified Claims

The FTC splits claims into two buckets: “unqualified” (no limitations or caveats) and “qualified” (containing explanations or conditions).

If the claim is unqualified, businesses are held to the highest standard.

Qualified claims allow for some flexibility—think, “Made in USA with global parts”—but even here, marketers need to be honest and able to back up every statement with evidence.

In other words, the qualifications must indicate the “extent, amount or type of a product's domestic content or processing,” as per FTC Guidelines.

Ongoing Compliance Obligations

Compliance isn’t a “set it and forget it” thing, including as cases are continuing to emerge in this area. Whenever suppliers, processes, or sources change, brands must revisit their claims and update marketing materials to stay above board. The FTC’s 2021 Labeling Rule even codified high civil penalties for companies that break the rules, whether the claim appears on packaging, online, or in catalogs. Businesses must also consider state advertising and marketing laws, which often cover these types of claims, and which also provide for damages and injunctions.

With lawsuits swirling, businesses are reevaluating how they communicate product origins. Some brands have shifted from “Made in USA” to alternative phrases like “Assembled in USA,” or have redesigned ad campaigns to highlight what really happens on U.S. soil.

How Brands Are Responding to “Made in USA” Lawsuits

When called out, some companies nix questionable marketing altogether.

Other companies update their marketing to ensure that they:

1. Only make “Made in USA” claims if the product truly qualifies. Claims must be true, supported, and not misleading. The FTC’s prior guidance provides examples and scenarios for determining if a claim passes muster, and regular audits of sourcing and assembly practices are key to compliance. See also more recent FTC Guidelines.

2. Are transparent with well-documented processes and honest communication to build trust with both consumers and regulators. Marketers who qualify their claims clearly (“Made in USA with some imported ingredients”) can avoid most headaches assuming their claims are supported, while still benefiting from consumer patriotism.

People want products that support American jobs and industry. But when companies bend the truth about their products' origins—even unintentionally—consumers, regulators, and advocacy groups push back. These lawsuits typically focus on whether brands mislead the public by marketing goods as truly “Made in USA” when, in fact, significant portions are imported.

Major Companies Sued for False “Made in USA” Claims

Big names are in the hot seat. From major food companies to personal care brands, these lawsuits scrutinize everything from snack chip labels to shampoo advertising. The stakes are high: class-action suits and government lawsuits can lead to big settlements, damages and penalties, injunctions, reputational risks, and sweeping changes to industry practices.

For example, big name brands have faced allegations for labeling products as “made” or “brewed” in America, even when key ingredients came from overseas. Some businesses learned the hard way by changing their language after facing legal action, opting for claims like “Assembled in the USA” (where accurate) instead of “Made in the USA.”

The surge in “Made in USA” lawsuits is a wake-up call: as demand for American-made products persists, legal scrutiny intensifies. Behind the headlines are real risks for marketers who cut corners as well as real opportunities for brands that go the extra mile on transparency and compliance. The FTC’s standards may seem demanding, but they’re designed to keep the marketplace honest. For anyone in the business of selling pride in American craftsmanship, it’s time to get those labels—and practices—in shape.

Kronenberger Rosenfeld, LLP regularly advises clients regarding advertising and FTC compliance issues. Contact our firm using our online case submission form here.

This blog post is for informational purposes only and should not be considered legal advice. Reading this content does not create an attorney-client relationship, and you should not act upon any information provided without seeking professional counsel specific to your situation. Laws may vary by jurisdiction, and you should consult a qualified attorney for guidance tailored to your individual circumstances.

Frequently Asked Questions

What qualifies a product as “Made in USA” under FTC rules?

• A product must be “all or virtually all” made in America, including its assembly, significant processing, and component sourcing. See FTC Guidelines for examples.
  

Can I use “Made in USA” if only the final assembly occurs in America?

• Not likely, unless virtually all parts and processing are U.S.-based. Marketing with just final assembly can mislead consumers and risk litigation.

How are law firms finding plaintiffs for these lawsuits?

• Some use ads to attract consumers who purchased possibly mislabeled products or tap their networks of clients focused on product labeling. Some consumers complain about these issues.

What risks do brands face in mislabeling?

• Lawsuits, financial penalties, damage to reputation, and forced changes in packaging and advertising are among the major risks.

What’s the difference between qualified and unqualified “Made in USA” claims?

• Unqualified claims require a product to meet the highest standard; qualified claims can include caveats or additional information, but must still be truthful, non-misleading, and substantiated.