The Federal Trade Commission’s ‘Made in America’ Policy Has Disincentivized Domestic Production but Supply Chain Issues Associated with Coronavirus May Incentivize Reshoring
Americans are proud of their domestic incorporations, sourcing, and/or production and want to market as such. The Federal Trade Commission (“FTC”) is a federal agency charged with the authority to regulate unfair and deceptive advertising in the marketplace. If a business wants to legally advertise as Made in America (“MIA”), it has to comply with the FTC’s Enforcement Policy Statement on U.S. Origin Claims (“Enforcement Policy”). For a product to be legally labeled as MIA under the Enforcement Policy, it must be “all or virtually all” made in the United States (“all or virtually all standard”). This means “all [or a de minims amount of] significant parts and processing that go into the product are of U.S. origin.” The FTC has also implemented a prerequisite for satisfying the all or virtually all standard, which requires a good’s final assembly or processing to occur in America and is rereferred to as the location where the product was last substantially transformed. Lastly, an advertiser’s MIA claim must be truthful and substantiated. This means the advertiser must have a reasonable basis for making the claim, such as competent and reliable evidence, showing that all or virtually all processes and materials did in fact happen in and came from the United States.
This post was originally published on the Cardozo Arts & Entertainment Law Journal website on February 8, 2021. The original post can be accessed via the Archived Link button above.
Cutler, Jamie, "The Federal Trade Commission’s ‘Made in America’ Policy Has Disincentivized Domestic Production but Supply Chain Issues Associated with Coronavirus May Incentivize Reshoring" (2021). AELJ Blog. 264.