Press Release: September 18, 2020
On June 22, 2020, the US Federal Trade Commission (FTC) published a Notice of Proposed Rulemaking (NPR) to define the requirements for making ‘Made in USA’ claims on packaging and marketing materials.
In the proposal, ‘Made in USA’ is defined as:
“Any unqualified representation, express or implied, that a product or service, or a specified component thereof, is of U.S. origin, including, but not limited to, a representation that such product or service is ‘made,’ ‘manufactured,’ ‘built,’ ‘produced,’ ‘created,’ or ‘crafted’ in the United States or in America, or any other unqualified US-origin claim.”
The NPR also explicitly covers unqualified ‘Made in USA’ claims that appear in seals, marks, tags, or stamps in mail order catalogs or mail order promotional materials, defined in the proposed rule as:
“Any materials, used in the direct sale or direct offering for sale of any product or service, that are disseminated in print or by electronic means, and that solicit the purchase of such product or service by mail, telephone, electronic mail, or some other method without examining the actual product purchased.”
Currently, most products are not required to make a ‘Made in USA’ claim. Exceptions include automobiles and items made from textiles or wool. Businesses can make the claim and, if they do so, they should ensure it complies with the FTC Made in USA standard.
Under the new rule the FTC is being tasked with enforcing FTC Section 5 of the FTC Act, 15 U.S.C. § 45(a), which prohibits the use of unfair or deceptive acts or practices in commerce.
Meeting the criteria: products must meet all three statements.
Stakeholders should be aware the proposed Rule would not be subject to pre-emption by any existing federal or state statutes or regulations relating to country-of-origin labels. The only exceptions are where such laws or regulations are inconsistent with the Rule. They should also be aware state rules that offer greater protection than those in the NPR will not be considered inconsistent.
SGS Consumer Product Services
SGS provides news about the development of regulations affecting consumer products as a complimentary service. With a global network of laboratories, SGS provides a wide range of services including physical/mechanical testing, analytical testing and consultancy work for technical and non-technical parameters applicable to a comprehensive range of consumer products. Learn more about SGS’s Consumer Product Services.
SGS SafeGuardS keep you up to date with the latest news and developments in the consumer goods industry. Read the full US Proposed Rulemaking on “Made in USA” Labeling SafeGuardS.
Subscribe here to receive SGS SafeGuardS direct to your inbox.
For further information contact:
SGS Consumer and Retail
Deputy Vice President
Phone: 973 461 7924
SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 89,000 employees, SGS operates a network of over 2,600 offices and laboratories around the world.