On April 14, 2026, the Federal Trade Commission announced a coordinated “Made in the USA” enforcement sweep, including three settlements and two investigation closing letters concerning “Made in America,” “Made in the USA,” and similar U.S.-origin claims. The announcement follows an Executive Order the Trump administration issued on March 13, 2026 (See April 2026 GT Alert) that directed the FTC and other federal agencies to protect both consumers and legitimate U.S. manufacturers, including by prioritizing enforcement actions for improper “Made in America” claims.
The Enforcement Actions
The FTC announced three settlements with companies that allegedly violated Section 5(a) of the FTC Act1 and the Made in the USA Labeling Rule2 by making unqualified statements that their products were “Made in the USA,” despite relying on foreign manufacturers for component parts. One of the settlements also resolved alleged violations of the Textile Fiber Products Identification Act and related rules.3 In total, the companies agreed to pay a collective $867,743 toward consumer redress.
- FTC reaches settlement with manufacturer and seller of electronic dartboards advertised as “Made in the USA.” The FTC sued the company in federal court, alleging violations of Section 5(a) of the FTC Act and the Made in the USA Labeling Rule. According to the FTC, the company made unqualified claims to consumers that its electronic dartboards were “Made in the USA” and “Proudly Made in the USA.” While final assembly of the dartboards occurred in the U.S., many component parts – including “components essential to the function and operation” of the product, such computer chips, cameras, and flatscreen monitors – were allegedly made outside the U.S. The settlement resolving these allegations prohibits the company from making misrepresentations about U.S. origin claims, requires notification to consumers of the settlement, and provides $625,000 toward consumer redress. This is the largest consumer redress award under the Made in the USA Labeling Rule to date.
- FTC reaches settlement with a footwear company that advertised its products as “Made in the USA.” The FTC sued a footwear seller in federal court, alleging violations of Section 5(a) of the FTC Act and the Made in the USA Labeling Rule. According to the FTC, the company represented that its footwear products were wholly handcrafted in the U.S., through advertisements and labeling which stated that the products were “Made in the USA,” “More than Made in USA™,” and “all components are crafted by hand, not pre-assembled overseas[.]” The FTC asserted that, to the contrary, the company utilized factories in the Dominican Republic and Brazil to create components parts and, at times, to complete final product assembly. The settlement resolving these allegations provides $75,000 toward consumer redress and prohibits the company from making misleading or unsubstantiated country-of-origin claims.
- FTC reaches settlement with two sellers of flag display products advertised as “Made in the USA.” The FTC sued two companies and their principals in federal court, alleging violations of Section 5(a) of the FTC Act and the Made in the USA Labeling Rule. According to the FTC, the companies made unqualified claims to consumers about their flagpole display products, which included flagpole kits, flags, and related accessories. The FTC alleged that the companies advertised the products as “Made in the USA,” “100% American Made Tough,” and “Built by Americans for Americans,” even though the products were imported, or comprised of “significant or essential foreign components” from China. The FTC alleged that the defendants also violated the Textile Fiber Products Identification Act and related rules by failing to include mandatory disclosures on the labeling and advertising for their textile fiber products, and by falsely claiming that those products were “Made in the USA,” even though the sellers knew the products were made in China. The settlement resolving these allegations requires the companies to avoid making misleading or unsubstantiated country-of-origin claims, notify consumers of the settlement, and make certain disclosures to consumers about the textile fiber products. The settlement provides $167,743 toward consumer redress.
Takeaways for Businesses
The timing of the FTC’s announcement and the details of the enforcement actions underscore that Made in the USA labeling claims are a priority for the agency. Notably, the enforcement sweep targeted unqualified claims that products were “Made in the USA,” and such claims may face a higher risk of enforcement in the future. In addition to regulatory actions, there is also a risk of class action lawsuits.
Companies making U.S.-origin claims – explicit or implied – may see increased scrutiny from the FTC and other federal agencies, as well as potentially significant monetary consequences for noncompliance. Sellers on digital marketplaces in particular may face an uptick in scrutiny due to the Executive Order’s emphasis on online misrepresentation.
Companies who make “Made in America” claims should consider reviewing:
- All marketing materials referencing “Made in America,” “Manufactured in the USA,” or similar U.S.-origin claims;
- Labeling and packaging practices; and
- Supplier certifications and origin documentation.
Moreover, given the anticipated cross‑agency coordination, businesses may want to evaluate whether their internal systems can document manufacturing location, assembly steps, and material sourcing.
Footnotes
1. 15 U.S.C. § 45(a).
2. 16 C.F.R. part 323.
3. 15 U.S.C. § 70 et seq.; 16 C.F.R. Part 303.
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