Advertising Law Tool Kit - Tenth Edition | 2022

36 / Venable Made in USA Claims Many customers like to “buy American” and perhaps are willing to pay more to do so. However, if you want to call out the red, white, and blue attributes of your product, you should know that the FTC, as well as some states such as California, have created very specific guidance and laws on what it means for a good to be of domestic origin. Under FTC guidance, final assembly must take place in the United States, and “all or virtually all” of the good must be attributable to U.S. sources. The FTC also considers a claim of Manufactured in the USA or Crafted in the USA to be the same as a Made in USA claim. If some part of the product development occurs in the United States, depending upon the degree of U.S. manufacturing and sourcing, you may be able to use qualified Made in USA claims, such as Made in the USA from domestic and imported parts, Assembled in the USA, or Designed in the USA. In July the FTC issued a rule on Made in USA claims made on product labels that codifies much of the FTC’s prior guidance. The FTC appears to be interpreting broadly what constitutes a label under the rule, especially for online sales. The FTC will be able to seek civil penalties of up to $43,280 per violation for violations of the Rule. Leonard L. Gordon lgordon@Venable.com +1 212.370.6252