{"id":36506,"date":"2008-03-26T16:35:41","date_gmt":"2008-03-26T21:35:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/complying-with-the-made-in-the-usa-standard.html"},"modified":"2008-03-26T16:35:41","modified_gmt":"2008-03-26T21:35:41","slug":"complying-with-the-made-in-the-usa-standard","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/litigation-disputes\/complying-with-the-made-in-the-usa-standard.html","title":{"rendered":"Complying with the Made In the USA Standard"},"content":{"rendered":"<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    <p><em>This article was edited and reviewed by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\" rel=\"noopener\">FindLaw Attorney Writers<\/a><\/em><\/p>\n\n                | Last reviewed\n        <time>\n                            May 11, 2026\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\" rel=\"noopener\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\" rel=\"noopener\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\" rel=\"noopener\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n\n<div class=\"rxbodyfield\" xmlns:o=\"urn:www.microsoft.com\/office\" xmlns:st1=\"urn:www.microsoft.com\/smarttags\" xmlns:w=\"urn:www.microsoft.com\/word\" xmlns:x=\"urn:www.microsoft.com\/excel\"><table border=\"0\" cellpadding=\"3\" width=\"580\"><tr><td><p><font color=\"#800040\" face=\"Arial\"><strong>Introduction<\/strong><\/font><\/p><p><font face=\"Times New Roman\">The Federal Trade Commission (FTC) is charged with preventing deception and unfairness in the marketplace. The FTC Act gives the Commission the power to bring law enforcement actions against false or misleading claims that a product is of U.S. origin. Traditionally, the Commission has required that a product advertised as <i>Made in USA<\/i> be &quot;all or virtually all&quot; made in the U.S. After a comprehensive review of <i>Made in USA<\/i> and other U.S. origin claims in product advertising and labeling, the Commission announced in December 1997 that it would retain the &quot;all or virtually all&quot; standard. The Commission also issued an Enforcement Policy Statement on U.S. Origin Claims to provide guidance to marketers who want to make an unqualified <i>Made in USA<\/i> claim under the &quot;all or virtually all&quot; standard and those who want to make a qualified <i>Made in USA<\/i> claim.<\/font><\/p><p><font face=\"Times New Roman\">This publication provides additional guidance about how to comply with the &quot;all or virtually all&quot; standard. It also offers some general information about the U.S. Customs Service&#39;s requirement that all products of foreign origin imported into the U.S. be marked with the name of the country of origin.<\/font><\/p><p><font face=\"Times New Roman\">This publication is the Federal Trade Commission staff&#39;s view of the law&#39;s requirements. It is not binding on the Commission. The Enforcement Policy Statement issued by the FTC is at the end of the publication.<\/font><\/p><p><font color=\"#800040\" face=\"Arial\"><strong>Basic Information About Maide In USA Claims<\/strong><\/font><\/p><p><b><font face=\"Times New Roman\">Must U.S. content be disclosed on products sold in the U.S.?<\/font><\/b><\/p><p><font face=\"Times New Roman\">U.S. content <a href=\"#Other Statutes\">must be disclosed<\/a> on automobiles and textile, wool, and fur products. There&#39;s no law that requires most other products sold in the U.S. to be marked or labeled <i>Made in USA<\/i> or have any other disclosure about their amount of U.S. content. However, manufacturers and marketers who choose to make claims about the amount of U.S. content in their products must comply with the FTC&#39;s <i>Made in USA<\/i> policy.<\/font><\/p><p><b><font face=\"Times New Roman\">What products does the FTC&#39;s <i>Made in USA<\/i> policy apply to?<\/font><\/b><\/p><p><font face=\"Times New Roman\">The policy applies to all products advertised or sold in the U.S., except for those specifically subject to country-of-origin labeling by <a href=\"#Other Statutes\">other laws<\/a> . Other countries may have their own country-of-origin marking requirements. As a result, exporters should determine whether the country to which they are exporting imposes such requirements.<\/font><\/p><p><b><font face=\"Times New Roman\">What kinds of claims does the Enforcement Policy Statement apply to?<\/font><\/b><\/p><p><font face=\"Times New Roman\">The Enforcement Policy Statement applies to U.S. origin claims that appear on products and labeling, advertising, and other promotional materials. It also applies to all other forms of marketing, including marketing through digital or electronic mechanisms, such as Internet or e-mail.<\/font><\/p><p><font face=\"Times New Roman\">A <i>Made in USA<\/i> claim can be express or implied.<\/font><\/p><blockquote><p><font face=\"Times New Roman\"><strong>Examples<\/strong> of express claims: <i>Made in USA<\/i>. &quot;Our products are American-made.&quot; &quot;USA.&quot;<\/font><\/p><\/blockquote><p><font face=\"Times New Roman\">In identifying implied <b\/>claims, the Commission focuses on the overall impression of the advertising, label, or promotional material. Depending on the context, U.S. symbols or geographic references (for example, U.S. flags, outlines of U.S. maps, or references to U.S. locations of headquarters or factories) may convey a claim of U.S. origin either by themselves, or in conjunction with other phrases or images.<\/font><\/p><blockquote><p><font face=\"Times New Roman\"><strong>Example:<\/strong> A company promotes its product in an ad that features a manager describing the &quot;true American quality&quot; of the work produced at the company&#39;s American factory. Although there is no express representation that the company&#39;s product is made in the U.S., the overall &#194;&#8212; or net &#194;&#8212; impression the ad is likely to convey to consumers is that the product is of U.S. origin.<\/font><\/p><\/blockquote><p><b><font face=\"Times New Roman\">Brand names and trademarks<\/font><\/b><\/p><p><font face=\"Times New Roman\">Ordinarily, the Commission will not consider a manufacturer or marketer&#39;s use of an American brand name or trademark by itself as a U.S. origin claim. Similarly, the Commission is not likely to interpret the mere listing of a company&#39;s U.S. address on a package label in a non-prominent way as a claim of U.S. origin.<\/font><\/p><blockquote><p><font face=\"Times New Roman\"><strong>Example:<\/strong> A product is manufactured abroad by a well-known U.S. company. The fact that the company is headquartered in the U.S. also is widely known. Company pamphlets for its foreign-made product prominently feature its brand name. Assuming that the brand name does not specifically denote U.S. origin (that is, the brand name is not &quot;Made in America, Inc.&quot;), using the brand name by itself does not constitute a claim of U.S. origin.<\/font><\/p><\/blockquote><p><b><font face=\"Times New Roman\">Representations about entire product lines<\/font><\/b><\/p><p><font face=\"Times New Roman\">Manufacturers and marketers should not indicate, either expressly or implicitly, that a whole product line is of U.S. origin (<i>&quot;<\/i>Our products are made in USA<i>&quot;<\/i>) when only some products in the product line are made in the U.S. according to the &quot;all or virtually all&quot; standard.<\/font><\/p><p><b><font face=\"Times New Roman\">Does the FTC pre-approve <i>Made in USA<\/i> claims?<\/font><\/b><\/p><p><font face=\"Times New Roman\">The Commission does not pre-approve advertising or labeling claims. A company doesn&#39;t need approval from the Commission before making a <i>Made in USA<\/i> claim. As with most other advertising claims, a manufacturer or marketer may make any claim as long as it is truthful and substantiated.<\/font><\/p><p><font color=\"#800040\" face=\"Arial\"><strong>The Standard For Unqualified Made In USA Claims<\/strong><\/font><\/p><p><b><font face=\"Times New Roman\">What is the standard for a product to be called <i>Made in USA<\/i> without qualification?<\/font><\/b><\/p><p><font face=\"Times New Roman\">For a product to be called <i>Made in USA,<\/i> or claimed to be of domestic origin without qualifications or limits on the claim, the product must be &quot;all or virtually all&quot; made in the U.S. The term &quot;United States,&quot; as referred to in the Enforcement Policy Statement, includes the 50 states, the District of Columbia, and the U.S. territories and possessions.<\/font><\/p><p><b><font face=\"Times New Roman\">What does &quot;all or virtually all&quot; mean?<\/font><\/b><\/p><p><font face=\"Times New Roman\">&quot;All or virtually all&quot; means that all significant parts and processing that go into the product must be of U.S. origin. That is, the product should contain no &#194;&#8212; or negligible &#194;&#8212; foreign content.<\/font><\/p><p><b><font face=\"Times New Roman\">What substantiation is required for a <i>Made in USA<\/i> claim?<\/font><\/b><\/p><p><font face=\"Times New Roman\">When a manufacturer or marketer makes an unqualified claim that a product is <i>Made in USA,<\/i> it should have &#194;&#8212; and rely on &#194;&#8212; a &quot;reasonable basis&quot; to support the claim at the time it is made. This means a manufacturer or marketer needs competent and reliable evidence to back up the claim that its product is &quot;all or virtually all&quot; made in the U.S. <\/font><\/p><p><b><font face=\"Times New Roman\">What factors does the Commission consider to determine whether a product is &quot;all or virtually all&quot; made in the U.S.?<\/font><\/b><\/p><p><font face=\"Times New Roman\">The product&#39;s final assembly or processing must take place in the U.S. The Commission then considers other factors, including how much of the product&#39;s total manufacturing costs can be assigned to U.S. parts and processing, and how far removed any foreign content is from the finished product. In some instances, only a small portion of the total manufacturing costs are attributable to foreign processing, but that processing represents a significant amount of the product&#39;s overall processing. The same could be true for some foreign parts. In these cases, the foreign content (processing or parts) is more than negligible, and, as a result, unqualified claims are inappropriate.<\/font><\/p><blockquote><p><font face=\"Times New Roman\"><strong>Example:<\/strong> A company produces propane barbecue grills at a plant in Nevada. The product&#39;s major components include the gas valve, burner and aluminum housing, each of which is made in the U.S. The grill&#39;s knobs and tubing are imported from Mexico. An unqualified <i>Made in USA<\/i> claim is not likely to be deceptive because the knobs and tubing make up a negligible portion of the product&#39;s total manufacturing costs and are insignificant parts of the final product.<\/font><\/p><\/blockquote><blockquote><p><font face=\"Times New Roman\"><strong>Example:<\/strong> A table lamp is assembled in the U.S. from American-made brass, an American-made Tiffany-style lampshade, and an imported base. The base accounts for a small percent of the total cost of making the lamp. An unqualified <i>Made in USA<\/i> claim is deceptive for two reasons: The base is not far enough removed in the manufacturing process from the finished product to be of little consequence and it is a significant part of the final product.<\/font><\/p><\/blockquote><p><b><font face=\"Times New Roman\">What items should manufacturers and marketers include in analyzing the percentage of domestic content in a particular product?<\/font><\/b><\/p><p><font face=\"Times New Roman\">Manufacturers and marketers should use the cost of goods sold or inventory costs of finished goods in their analysis. Such costs generally are limited to the total cost of all manufacturing materials, direct manufacturing labor, and manufacturing overhead.<\/font><\/p><p><b><font face=\"Times New Roman\">Should<\/font> manufacturers and marketers rely on information from American suppliers about the amount of domestic content in the parts, components, and other elements they buy and use for their final products?<\/b><\/p><p><font face=\"Times New Roman\">If given in good faith, manufacturers and marketers can rely on information from suppliers about the domestic content in the parts, components, and other elements they produce. Rather than <i>assume<\/i> that the input is 100 percent U.S.-made, however, manufacturers and marketers would be wise to <i>ask<\/i> the supplier for specific information about the percentage of U.S. content before they make a U.S. origin claim.<\/font><\/p><blockquote><p><font face=\"Times New Roman\"><strong>Example:<\/strong> A company manufactures food processors in its U.S. plant, making most of the parts, including the housing and blade, from U.S. materials. The motor, which constitutes 50 percent of the food processor&#39;s total manufacturing costs, is bought from a U.S. supplier. The food processor manufacturer knows that the motor is assembled in a U.S. factory. Even though most of the parts of the food processor are of U.S. origin, the final assembly is in the U.S., and the motor is assembled in the U.S., the food processor is not considered &quot;all or virtually all&quot; American-made if the motor itself is made of imported parts that constitute a significant percentage of the appliance&#39;s total manufacturing cost. Before claiming the product is <i>Made in USA<\/i>, this manufacturer should look to its motor supplier for more specific information about the motor&#39;s origin.<\/font><\/p><p><font face=\"Times New Roman\"><strong>Example:<\/strong> On its purchase order, a company states: &quot;Our company requires that suppliers certify the percentage of U.S. content in products supplied to us. If you are unable or unwilling to make such certification, we will not purchase from you.&quot; Appearing under this statement is the sentence, &quot;We certify that our ___ have at least ___% U.S. content,&quot; with space for the supplier to fill in the name of the product and its percentage of U.S. content. The company generally could rely on a certification like this to determine the appropriate country-of-origin designation for its product.<\/font><\/p><\/blockquote><p><b><font face=\"Times New Roman\">How far back in the manufacturing process should manufacturers and marketers look?<\/font><\/b><\/p><p><font face=\"Times New Roman\">To determine the percentage of U.S. content, manufacturers and marketers should look back far enough in the manufacturing process to be reasonably sure that any significant foreign content has been included in their assessment of foreign costs. Foreign content incorporated early in the manufacturing process often will be less significant to consumers than content that is a direct part of the finished product or the parts or components produced by the immediate supplier.<\/font><\/p><blockquote><p><font face=\"Times New Roman\"><strong>Example:<\/strong> The steel used to make a single component of a complex product (for example, the steel used in the case of a computer&#39;s floppy drive) is an early input into the computer&#39;s manufacture, and is likely to constitute a very small portion of the final product&#39;s total cost. On the other hand, the steel in a product like a pipe or a wrench is a direct and significant input. Whether the steel in a pipe or wrench is imported would be a significant factor in evaluating whether the finished product is &quot;all or virtually all&quot; made in the U.S.<\/font><\/p><\/blockquote><p><b><font face=\"Times New Roman\">Are raw materials included in the evaluation of whether a product is &quot;all or virtually all&quot; made in the U.S.?<\/font><\/b><\/p><p><font face=\"Times New Roman\">It depends on how much of the product&#39;s cost the raw materials make up and how far removed from the finished product they are.<\/font><\/p><blockquote><p><font face=\"Times New Roman\"><strong>Example:<\/strong> If the gold in a gold ring is imported, an unqualified <i>Made in USA<\/i> claim for the ring is deceptive. That&#39;s because of the significant value the gold is likely to represent relative to the finished product, and because the gold &#194;&#8212; an integral component &#194;&#8212; is only one step back from the finished article. By contrast, consider the plastic in the plastic case of a clock radio otherwise made in the U.S. of U.S.-made components. If the plastic case was made from imported petroleum, a <i>Made in USA<\/i> claim is likely to be appropriate because the petroleum is far enough removed from the finished product, and is an insignificant part of it as well.<\/font><\/p><\/blockquote><p><font color=\"#800040\" face=\"Arial\"><strong>Qualified Claims<\/strong><\/font><\/p><p><b><font face=\"Times New Roman\">What is a qualified <i>Made in USA<\/i> claim?<\/font><\/b><\/p><p><font face=\"Times New Roman\">A qualified <i>Made in USA<\/i> claim describes the extent, amount or type of a product&#39;s domestic content or processing; it indicates that the product isn&#39;t entirely of domestic origin.<\/font><\/p><blockquote><p><font face=\"Times New Roman\"><strong>Example:<\/strong> &quot;60% U.S. content.&quot; &quot;Made in USA of U.S. and imported parts.&quot; &quot;Couch assembled in USA from Italian Leather and Mexican Frame.&quot;<\/font><\/p><\/blockquote><p><b><font face=\"Times New Roman\">When is a qualified <i>Made in USA<\/i> claim appropriate?<\/font><\/b><\/p><p><font face=\"Times New Roman\">A qualified <i>Made in USA<\/i> claim is appropriate for products that include U.S. content or processing but don&#39;t meet the criteria for making an unqualified <i>Made in USA<\/i> claim. Because even qualified claims may imply more domestic content than exists, manufacturers or marketers must exercise care when making these claims. That is, avoid qualified claims unless the product has a significant amount of U.S. content or U.S. processing. A qualified <i>Made in USA<\/i> claim, like an unqualified claim, must be truthful and substantiated.<\/font><\/p><blockquote><p><font face=\"Times New Roman\"><strong>Example:<\/strong> An exercise treadmill is assembled in the U.S. The assembly represents significant work and constitutes a &quot; <a href=\"#substantial transformation\">substantial transformation<\/a>&quot; (a term used by the U.S. Customs Service). All of the treadmill&#39;s major parts, including the motor, frame, and electronic display, are imported. A few of its incidental parts, such as the handle bar covers, the plastic on\/off power key, and the treadmill mat, are manufactured in the U.S. Together, these parts account for approximately three percent of the total cost of all the parts. Because the value of the U.S.-made parts is negligible compared to the value of all the parts, a claim on the treadmill that it is &quot;Made in USA of U.S. and Imported Parts&quot; is deceptive. A claim like &quot;Made in U.S. from Imported Parts&quot; or &quot; <a href=\"#Assembled in U.S.A.\">Assembled in U.S.A.<\/a>&quot; would not be deceptive.<\/font><\/p><\/blockquote><p><b><font face=\"Times New Roman\">U.S. origin claims for specific processes or parts<\/font><\/b><\/p><p><font face=\"Times New Roman\">Claims that a particular manufacturing or other process was performed in the U.S. or that a particular part was manufactured in the U.S. must be truthful, substantiated, and clearly refer to the specific process or part, not to the general manufacture of the product, to avoid implying more U.S. content than exists.<\/font><\/p><p><font face=\"Times New Roman\">Manufacturers and marketers should be cautious about using general terms, such as &quot;produced,&quot; &quot;created&quot; or &quot;manufactured&quot; in the U.S. Words like these are unlikely to convey a message limited to a particular process. Additional qualification probably is necessary to describe a product that is not &quot;all or virtually all&quot; made in the U.S.<\/font><\/p><p><font face=\"Times New Roman\">In addition, if a product is of foreign origin (that is, it has been substantially transformed abroad), manufacturers and marketers also should make sure they satisfy Customs&#39; markings statute and regulations that require such products to be marked with a foreign <a href=\"#country of origin\">country of origin<\/a>. Further, Customs requires the foreign country of origin to be preceded by &quot;Made in,&quot; &quot;Product of,&quot; or words of similar meaning when any city or location that is not the country of origin appears on the product.<\/font><\/p><blockquote><p><font face=\"Times New Roman\"><strong>Example:<\/strong> A company designs a product in New York City and sends the blueprint to a factory in Finland for manufacturing. It labels the product &quot;Designed in USA &#194;&#8212; Made in Finland.&quot; Such a specific processing claim would not lead a reasonable consumer to believe that the whole product was made in the U.S. The Customs Service requires the product to be marked &quot;Made in,&quot; or &quot;Product of&quot; Finland since the product is of Finnish origin and the claim refers to the U.S. Examples of other specific processing claims are: &quot;Bound in U.S. &#194;&#8212; Printed in Turkey.&quot; &quot;Hand carved in U.S. &#194;&#8212; Wood from Philippines.&quot; &quot;Software written in U.S. &#194;&#8212; Disk made in India.&quot; &quot;Painted and fired in USA. Blanks made in (foreign country of origin).&quot;<\/font><\/p><p><font face=\"Times New Roman\"><strong>Example:<\/strong> A company advertises its product, which was invented in Seattle and manufactured in Bangladesh, as &quot;Created in USA.&quot; This claim is deceptive because consumers are likely to interpret the term &quot;Created&quot; as <i>Made in USA<\/i> &#194;&#8212; an unqualified U.S. origin claim.<\/font><\/p><p><font face=\"Times New Roman\"><strong>Example:<\/strong> A computer imported from Korea is packaged in the U.S. in an American-made corrugated paperboard box containing only domestic materials and domestically produced expanded rigid polystyrene plastic packing. Stating <i>Made in USA<\/i> on the package would deceive consumers about the origin of the product inside. But the company could legitimately make a qualified claim, such as &quot;Computer Made in Korea &#194;&#8212; Packaging Made in USA.&quot;<\/font><\/p><p><font face=\"Times New Roman\"><strong>Example:<\/strong> The Acme Camera Company assembles its cameras in the U.S. The camera lenses are manufactured in the U.S., but most of the remaining parts are imported. A magazine ad for the camera is headlined &quot;Beware of Imported Imitations&quot; and states &quot;Other high-end camera makers use imported parts made with cheap foreign labor. But at Acme Camera, we want only the highest quality parts for our cameras and we believe in employing American workers. That&#39;s why we make all of our lenses right here in the U.S.&quot; This ad is likely to convey that more than a specific product part (the lens) is of U.S. origin. The marketer should be prepared to substantiate the broader U.S. origin claim conveyed to consumers viewing the ad.<\/font><\/p><\/blockquote><p><b><font face=\"Times New Roman\">Comparative Claims<\/font><\/b><\/p><p><font face=\"Times New Roman\">Comparative claims should be truthful and substantiated, and presented in a way that makes the basis for comparison clear (for example, whether the comparison is to another leading brand or to a previous version of the same product). They should truthfully describe the U.S. content of the product and be based on a meaningful difference in U.S. content between the compared products. <b\/><\/font><\/p><blockquote><font face=\"Times New Roman\"\/><p><font face=\"Times New Roman\"><strong>Example:<\/strong> An ad for cellular phones states &quot;We use more U.S. content than any other cellular phone manufacturer.&quot; The manufacturer assembles the phones in the U.S. from American and imported components and can substantiate that the difference between the U.S. content of its phones and that of the other manufacturers&#39; phones is significant. This comparative claim is not deceptive.<\/font><\/p><p><font face=\"Times New Roman\"><strong>Example:<\/strong> A product is advertised as having &quot;twice as much U.S. content as before.&quot; The U.S. content in the product has been increased from 2 percent in the previous version to 4 percent in the current version. This comparative claim is deceptive because the difference between the U.S. content in the current and previous version of the product are insignificant.<\/font><\/p><\/blockquote><p><b><a id=\"Assembled in U.S.A.\" name=\"Assembled in U.S.A.\"><font face=\"Times New Roman\">Assembled in USA Claims<\/font><\/a><\/b><\/p><p><font face=\"Times New Roman\">A product that includes foreign components may be called &quot;Assembled in USA&quot; without qualification when its principal assembly takes place in the U.S. and the assembly is substantial. For the &quot;assembly&quot; claim to be valid, the product&#39;s last &quot; <a href=\"#substantial transformation\">substantial transformation<\/a>&quot; also should have occurred in the U.S. That&#39;s why a &quot;screwdriver&quot; assembly in the U.S. of foreign components into a final product at the end of the manufacturing process doesn&#39;t usually qualify for the &quot;Assembled in USA&quot; claim.<\/font><\/p><blockquote><p><font face=\"Times New Roman\"><strong>Example:<\/strong> A lawn mower, composed of all domestic parts except for the cable sheathing, flywheel, wheel rims and air filter (15 to 20 percent foreign content) is assembled in the U.S. An &quot;Assembled in USA&quot; claim is appropriate.<\/font><\/p><p><font face=\"Times New Roman\"><strong>Example:<\/strong> All the major components of a computer, including the motherboard and hard drive, are imported. The computer&#39;s components then are put together in a simple &quot;screwdriver&quot; operation in the U.S., are not substantially transformed under the Customs Standard, and must be marked with a foreign country of origin. An &quot;Assembled in U.S.&quot; claim without further qualification is deceptive.<\/font><\/p><\/blockquote><p><font color=\"#800040\" face=\"Arial\"><strong>The FTC and The Customs Service<\/strong><\/font><\/p><p><b><font face=\"Times New Roman\"><a id=\"country of origin\" name=\"country of origin\">What is the U.S.<\/a> Customs Service&#39;s jurisdiction over country-of-origin claims?<\/font><\/b><\/p><p><font face=\"Times New Roman\">The Tariff Act gives Customs and the Secretary of the Treasury the power to administer the requirement that imported goods be marked with a foreign country of origin (for example, &quot;Made in Japan&quot;).<\/font><\/p><p><font face=\"Times New Roman\"><a id=\"substantial transformation\" name=\"substantial transformation\">When an imported<\/a> product incorporates materials and\/or processing from more than one country, Customs considers the country of origin to be the last country in which a &quot;substantial transformation&quot; took place. Customs defines &quot;substantial transformation&quot; as a manufacturing process that results in a new and different product with a new name, character, and use that is different from that which existed before the change. Customs makes country-of-origin determinations using the &quot;substantial transformation&quot; test on a case-by-case basis. In some instances, Customs uses a &quot;tariff shift&quot; analysis, comparable to &quot;substantial transformation,&quot; to determine a product&#39;s country of origin.<\/font><\/p><p><b><font face=\"Times New Roman\">What is the interaction between the FTC and Customs regarding country-of-origin claims?<\/font><\/b><\/p><p><font face=\"Times New Roman\">Even if Customs determines that an imported product does not need a foreign country-of-origin mark, it is not necessarily permissible to promote that product as <i>Made in USA.<\/i> The FTC considers <b\/>additional <b\/>factors <b\/>to decide whether a product can be advertised or labeled as <i>Made in USA.<\/i><\/font><\/p><p><font face=\"Times New Roman\">Manufacturers and marketers should check with Customs to see if they need to mark their products with the foreign country of origin. If they don&#39;t, they should look at the FTC&#39;s standard to check if they can properly make a <i>Made in USA<\/i> claim.<\/font><\/p><p><font face=\"Times New Roman\">The FTC has jurisdiction over foreign origin claims on products and in packaging that are beyond the disclosures required by Customs (for example, claims that supplement a required foreign origin marking to indicate where additional processing or finishing of a product occurred).<\/font><\/p><p><font face=\"Times New Roman\">The FTC also has jurisdiction over foreign origin claims in advertising and other promotional materials. Unqualified U.S. origin claims in ads or other promotional materials for products that Customs requires a foreign country-of-origin mark may mislead or confuse consumers about the product&#39;s origin. To avoid misleading consumers, marketers should clearly disclose the foreign manufacture of a product.<\/font><\/p><blockquote><p><font face=\"Times New Roman\"><strong>Example:<\/strong> A television set assembled in Korea using an American-made picture tube is shipped to the U.S. The Customs Service requires the television set to be marked &quot;Made in Korea&quot; because that&#39;s where the television set was last &quot;substantially transformed.&quot; The company&#39;s World Wide Web page states &quot;Although our televisions are made abroad, they always contain U.S.-made picture tubes.&quot; This statement is not deceptive. However, making the statement &quot;All our picture tubes are made in the USA&quot; &#194;&#8212; without disclosing the foreign origin of the television&#39;s manufacture &#194;&#8212; might imply a broader claim (for example, that the television set is largely made in the U.S.) than could be substantiated. That is, if the statement and the entire ad imply that any foreign content or processing is negligible, the advertiser must substantiate that claim or net impression. The advertiser in this scenario would not be able to substantiate the implied <i>Made in USA<\/i> claim because the product was &quot;substantially transformed&quot; in Korea.<\/font><\/p><\/blockquote><p><a id=\"Other Statutes\" name=\"Other Statutes\"><font color=\"#800040\" face=\"Arial\"><strong>Other Statutes<\/strong><\/font><\/a><\/p><p><b><font face=\"Times New Roman\">What are the requirements of other federal statutes relating to country-of-origin determinations?<\/font><\/b><\/p><p><font face=\"Times New Roman\"><strong><a href=\"http:\/\/www.ftc.gov\/os\/statutes\/textile\/textlact.htm\" rel=\"noopener\">Textile Fiber Products Identification Act<\/a><\/strong> and <strong><a href=\"http:\/\/www.ftc.gov\/os\/statutes\/textile\/woolact.htm\" rel=\"noopener\">Wool Products Labeling Act<\/a><\/strong> &#194;&#8212; Require a <i>Made in USA<\/i> label on most clothing and other textile or wool household products if the final product is manufactured in the U.S. of fabric that is manufactured in the U.S., regardless of where materials earlier in the manufacturing process (for example, the yarn and fiber) came from. Textile products that are imported must be labeled as required by the Customs Service. A textile or wool product partially manufactured in the U.S. and partially manufactured in another country must be labeled to show both foreign and domestic processing.<\/font><\/p><p><font face=\"Times New Roman\">On a garment with a neck, the country of origin must be disclosed on the front of a label attached to the inside center of the neck &#194;&#8212; either midway between the shoulder seams or very near another label attached to the inside center of the neck. On a garment without a neck, and on other kinds of textile products, the country of origin must appear on a conspicuous and readily accessible label on the inside or outside of the product.<\/font><\/p><p><font face=\"Times New Roman\">Catalogs and other mail order promotional materials for textile and wool products, including those disseminated on the Internet, must disclose whether a product is made in the U.S., imported or both.<\/font><\/p><p><font face=\"Times New Roman\">The <strong>Fur Products Labeling Act<\/strong> requires the country of origin of imported furs to be disclosed on all labels and in all advertising. For copies of the Textile, Wool or Fur Rules and Regulations, or the new business education guide on labeling requirements, call the FTC&#39;s Consumer Response Center<br\/> (202-382-4357). Or visit the FTC online at www.ftc.gov. Click on Consumer Protection.<\/font><\/p><p><font face=\"Times New Roman\"><strong>American Automobile Labeling Act<\/strong> &#194;&#8212; Requires that each automobile manufactured on or after October 1, 1994, for sale in the U.S. bear a label disclosing where the car was assembled, the percentage of equipment that originated in the U.S. and Canada, and the country of origin of the engine and transmission. Any representation that a car marketer makes that is required by the AALA is exempt from the Commission&#39;s policy. When a company makes claims in advertising or promotional materials that go beyond the AALA requirements, it will be held to the Commission&#39;s standard. For more information, call the<br\/> Consumer Programs Division of the National Highway Traffic Safety Administration (202-366-0846).<\/font><\/p><p><font face=\"Times New Roman\"><strong>Buy American Act<\/strong> &#194;&#8212; Requires that a product be manufactured in the U.S. of more than 50 percent U.S. parts to be considered <i>Made in USA<\/i> for government procurement purposes. For more information, review the Buy American Act at 41 U.S.C. &#39; 10a-10c, the Federal Acquisition Regulations at 48 C.F.R. Part 25, and the Trade Agreements Act at 19 U.S.C. &#39; 2501-2582.<\/font><\/p><p><font color=\"#800040\" face=\"Arial\"><strong>What To Do About Violations<\/strong><\/font><\/p><p><b><font face=\"Times New Roman\">What if I suspect noncompliance with the FTC&#39;s <i>Made in USA<\/i> standard or other country-of-origin mislabeling?<\/font><\/b><\/p><p><font face=\"Times New Roman\">Information about possible illegal activity helps law enforcement officials target companies whose practices warrant scrutiny. If you suspect noncompliance, contact the Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 20580; (202) 326-2996 or send an e-mail to MUSA@ftc.gov. If you know about import or export fraud, call Customs&#39; toll-free Commercial Fraud Hotline, 1-800-ITS-FAKE. Examples of fraudulent practices involving imports include removing a required foreign origin label before the product is delivered to the ultimate purchaser (with or without the improper substitution of a <i>Made in USA<\/i> label) and failing to label a product with a required country of origin.<\/font><\/p><p><font face=\"Times New Roman\">You also can contact your state Attorney General and your local Better Business Bureau to report a company. Or you can refer your complaint to the National Advertising Division (NAD) of the Council of Better Business Bureaus by calling (212) 754-1320. NAD handles complaints about the truth and accuracy of national advertising. You can reach the Council of Better Business Bureaus on the web at adweb.com\/adassoc17.html.<\/font><\/p><p><font face=\"Times New Roman\">Finally, the <b>Lanham Act<\/b> gives any person (such as a competitor) who is damaged by a false designation of origin the right to sue the party making the false claim. Consult a lawyer to see if this private right of action is an appropriate course of action for you.<\/font><\/p><p><font color=\"#800040\" face=\"Arial\"><strong>Your Opportunity to Comment<\/strong><\/font><\/p><p><font face=\"Times New Roman\">The Small Business and Agriculture Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards collect comments from small business about federal enforcement actions. Each year, the Ombudsman evaluates enforcement activities and rates each agency&#39;s responsiveness to small business. To comment on FTC actions, call 1-888-734-3247.<\/font><\/p><div align=\"center\"><center><table border=\"0\" cellpadding=\"0\" cellspacing=\"0\" width=\"580\"><tr><td><font face=\"Times New Roman\">You can file a complaint with the FTC by contacting the Consumer Response Center by phone: 202-FTC-HELP (382-4357); TDD: 202-326-2502; by mail: Consumer Response Center, Federal Trade Commission, Washington, DC 20580; or through the Internet, using the <a href=\"http:\/\/www.ftc.gov\/ftc\/complaint.htm\" rel=\"noopener\">online complaint form<\/a>.<\/font> Although the Commission cannot resolve individual problems for consumers, it can act against a company if it sees a pattern of possible law violations. <p>The FTC publishes free brochures on many consumer issues. For a <a href=\"http:\/\/www.ftc.gov\/ftc\/consumer.htm\" rel=\"noopener\">complete list of publications<\/a>, write for <b>Best Sellers<\/b><font size=\"3\">,<\/font> Consumer Response Center, <font size=\"3\"><a href=\"http:\/\/www.ftc.gov\/index.html\" rel=\"noopener\">Federal Trade Commission<\/a>,<\/font> Washington, D.C. 20580; or call (202) FTC-HELP (382-4357), TDD (202) 326-2502.<\/p><\/td><\/tr><\/table><\/center><\/div><\/td><\/tr><\/table><\/div>","protected":false},"excerpt":{"rendered":"<p> The Federal Trade Commission (FTC) is charged with preventing deception and unfairness in the marketplace. The FTC Act gives the Commission the power to bring law enforcement actions against false or misleading claims that a product is of U.S &#8230;<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_categories":[6520,6532],"class_list":["post-36506","corporate","type-corporate","status-publish","hentry","corporate_categories-litigation-disputes","corporate_categories-litigation-disputes__other-litigation-disputes"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate\/36506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=36506"}],"wp:term":[{"taxonomy":"corporate_categories","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_categories?post=36506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}