Ensuring Truthful Advertising of Products Claiming to be Made in America

Key Points

• Trump signed an executive order directing the FTC to crack down on companies that falsely claim their products are "Made in America." The order aims to protect consumers who rely on American-origin labels when shopping, especially online, and to support businesses that genuinely manufacture in the U.S.
• The FTC is directed to prioritize enforcement against sellers and manufacturers making false American-origin claims, with a particular focus on foreign companies selling through online marketplaces while pretending their products were made domestically.
• Online marketplaces could face new regulations requiring them to verify country-of-origin claims. If platforms don't set up verification procedures, they could be found guilty of unfair or deceptive practices under federal trade law.
• Government contractors who lie about products being American-made will face serious consequences. Agencies must periodically verify origin claims, and any fraudulent vendors will be removed from government procurement and referred to the Department of Justice for potential False Claims Act prosecution.
• All agencies that oversee country-of-origin labeling are directed to consider creating consistent, voluntary labeling standards so that American manufacturers receive clear guidance on how to properly label their domestically produced goods.