“Made in USA” Claims Back in FTC’s Crosshairs: What Companies Should Do Now
On January 13, 2026, President Trump nominated WeatherTech founder David MacNeil to the Federal Trade Commission. This nomination follows from the FTC tightening oversight of Made-in-USA claims in 2025, with the FTC declaring July “Made in the USA Month” and sending warning letters to companies with allegedly misleading marketing.[1]
Mr. MacNeil’s nomination stands out because he is a business owner committed to American-made products. The day after the FTC issued its July 2025 warning letters, Mr. MacNeil stressed in a CBS News interview that domestic manufacturing is a matter of principle, not profit, and that deceptive practices are unfair.[2] FTC Chairman Andrew Ferguson reshared Mr. MacNeil’s interview on X (Twitter) the same day as the January 2026 nomination,[3] signaling that the FTC is doubling down on this enforcement priority.
What Does “Made in USA” Actually Mean?
A recent poll found that 82% of shoppers would buy more American-made products if sold more widely.[4] But the concept of American made can be confusing.
Sixty percent of consumers believe that it means using U.S. parts and labor, 20% believe the definition also allows for foreign-made parts assembled within the U.S., and the remainder believe it means something else.[5] The FTC has its own definition too.
The FTC’s recent warning letters outline the basic requirements for making Made-in-USA claims. The letters invoke Section 5 of the FTC Act, which prohibits unfair or deceptive acts or practices in or affecting commerce.[6] The FTC’s letters explain that “when a company makes United States origin claims about its product (e.g., ‘Made in the USA’), or otherwise claims the product is of domestic origin, the product must be ‘all or virtually all’ made in the U.S.”[7] The FTC has said this means that “all significant parts and processing that go into the product” are of U.S. origin, and “the product should contain, at most, only negligible foreign content.”[8]
The letters also invoke the Made in USA Labeling Rule, asserting that it is a violation “to label any product as ‘Made in the United States’ unless the final assembly or processing of the product occurs in the United States, all significant processing that goes into the product occurs in the United States, and all or virtually all ingredients or components of the product are made and sourced in the United States.”[9] Put simply: unless a product is “all or virtually all” made in the United States, using a “Made in USA” or other unqualified U.S.-origin claim on labeling, packaging, or other marketing may violate Section 5 of the FTC Act or the MUSA Labeling Rule.”[10]
Conducting a compliance analysis, however, is not always straightforward. A Made-in-USA claim can be express or implied. Implied claims can be fraught with compliance issues because there is not a bright-line test. Instead, “the FTC focuses on the overall impression the advertising, label, or promotional material conveys to consumers.”[11]
Additionally, when assessing whether a product is “all or virtually all” made in the U.S., the FTC considers several factors. For example, while a product’s final assembly or processing must take place in the U.S., the FTC considers “how much of the product’s total manufacturing costs can be assigned to U.S. parts and processing, how far removed any foreign content is from the finished product, and the importance of the foreign content to the product’s form or function.”[12]
Even for qualified claims, the FTC cautions against claims that imply more domestic content than was actually used. The FTC advises against even using qualified claims unless the product has a significant amount of U.S. content or U.S. processing, reinforcing the need for careful substantiation and legal review.
What Should Companies Expect?
Mr. MacNeil’s nomination should send a clear warning to companies making or seeking to make Made-in-USA claims.
For decades, Mr. MacNeil has emphasized his “commitment to American-made auto, home and pet products,” while creating over 1,300 full-time jobs in the U.S.[13] Industry observers expect him to accelerate the FTC’s work in this area and hold accountable companies that falsely represent products as American made.[14]
Mr. MacNeil’s nomination comes on the heels of an already active FTC in this area. The FTC’s recent warning letters to a flagpole retailer, footwear maker, football equipment company, and a personal care products manufacturer “strongly encouraged” immediate compliance with the FTC’s “Made in USA” rules.[15] The FTC also sent warning letters to major retailers, identifying third-party sellers who may be making deceptive U.S.-origin claims on those online marketplaces in violation of the FTC Act and the platform’s terms of service. [16] In an accompanying press release, Chairman Ferguson emphasized that “Companies that falsely claim their products are ‘Made in the USA’ can expect to hear from the FTC.”[17]
Beyond warning letters, the FTC might issue civil investigative demands (administrative subpoenas), file a federal lawsuit seeking injunctive relief, and pursue civil penalties of up to $53,088 per violation of the MUSA Labeling Rule, or seek other monetary relief under Section 19(b) of the FTC Act.[18]
For example, in 2024, the FTC sued a home-products company and required it to pay “a record civil penalty” of $3.175 million for violating an earlier FTC order requiring the retailer to state accurately whether its products are American made.[19] In addition to the civil penalty, the federal court settlement also required the company to submit annual compliance certifications and imposed several requirements on the claims the company makes.
The risks also extend to class-action suits, which have increased in recent years and have led to settlements, jury awards, and plaintiffs recovering millions of dollars.[20]
What Should Companies Do Now?
Given increased enforcement and class-action risks, companies should be proactive and take steps to minimize exposure, including:
Audit “Made in USA” and other origin claims, including mapping component sourcing and final assembly;
Implement a documented substantiation file for each claim and align labeling and marketing with the MUSA Labeling Rule;
Provide guidance to marketing, product, procurement, and e‑commerce teams;
Monitor third‑party sellers on marketplaces; and
Conduct a legal assessment of compliance risks, especially when the supply chain is complex and implied or qualified claims are implicated.
In short, the FTC has emphasized that when making Made-in-USA claims, manufacturers and marketers need “competent and reliable evidence to back up the claim that its product is ‘all or virtually all’ made in the U.S.” and have an ongoing obligation to ensure this standard is met.[21]
If you have questions about this Client Alert or are interested in additional details or guidance, please reach out to Adam M. Acosta (adam.acosta@pierferd.com) or your regular PierFerd contact for assistance.
This publication and/or any linked publications herein do not constitute legal, accounting, or other professional advice or opinions on specific facts or matters and, accordingly, the author(s) and PierFerd assume no liability whatsoever in connection with its use. Pursuant to applicable rules of professional conduct, this publication may constitute Attorney Advertising. © 2026 Pierson Ferdinand LLP.
[1] Made in the USA Month, The Federal Trade Commission (last visited Jan. 16, 2026), https://www.ftc.gov/news-events/features/made-usa-month.
[2] Federal Trade Commission Warns Companies to Comply with “Made in USA” Requirements, The Federal Trade Commission (July 8, 2025), https://www.ftc.gov/news-events/news/press-releases/2025/07/federal-trade-commission-warns-companies-comply-made-usa-requirements.
[3] @AFergusonFTC, X (Jan. 13, 2026), https://x.com/AFergusonFTC/status/2011182754591871263.
[4] Emily Heaslip, American Made? How to Market Your Made in USA Products, U.S. Chamber of Commerce (July 23, 2025), https://www.uschamber.com/co/grow/marketing/market-usa-based-products.
[5] Bill Rossiter, Made(ish) in America, Interrupt (last visited Jan. 16, 2026), https://interruptdelivers.com/themash/made-in-america.
[6] Federal Trade Commission Warns Companies to Comply with “Made in USA” Requirements, The Federal Trade Commission (July 8, 2025), https://www.ftc.gov/news-events/news/press-releases/2025/07/federal-trade-commission-warns-companies-comply-made-usa-requirements.
[7] Id.
[8] Id.
[9] Id.
[10] Id.
[11] Complying with the Made in USA Standard, The Federal Trade Commission (July 2024), https://www.ftc.gov/business-guidance/resources/complying-made-usa-standard.
[12] Id.
[13] About Us, WeatherTech (last viewed Jan. 20, 2026), https://www.weathertech.com/about-us.html#:~:text=WeatherTech%20by%20the%20numbers,of%20Super%20Bowl%20Spots.
[14] Paul Steidler, David MacNeil: A Most Unconventional FTC Commissioner Nominee, Lexington Institute (Jan. 15, 2026), https://lexingtoninstitute.org/david-macneil-a-most-unconventional-ftc-commissioner-nominee/.
[15] FTC Warns Companies to Comply with “Made in USA” Requirements, The Federal Trade Commission (July 8, 2025), https://www.ftc.gov/news-events/news/press-releases/2025/07/federal-trade-commission-warns-companies-comply-made-usa-requirements.
[16] Id.
[17] Id.
[18] Id.
[19] Williams-Sonoma Will Pay Record $3.17 Million Civil Penalty for Violating FTC Made in USA Order, The Federal Trade Commission (Apr. 26, 2024), https://www.ftc.gov/news-events/news/press-releases/2024/04/williams-sonoma-will-pay-record-317-million-civil-penalty-violating-ftc-made-usa-order.
[20] Patrick Coffee, How Trump Inspired One Law Firm to Blitz Brands With ‘Made in USA’ Challenges, The Wall Street Journal (June 4, 2025), https://www.wsj.com/articles/meet-the-law-firm-driving-a-surge-in-made-in-america-advertising-suits-69a26f5c?gaa_at=eafs&gaa_n=AWEtsqeCGyaNaL2hXSsaBOD6c8KkMWEORy4j4KnWE2-nVntYV-Y_DohA6Zeu1S1kFvE%3D&gaa_ts=696ad13b&gaa_sig=kZp8BwclwISeDKchzvA3XFAXUlLGULhZqdJGnbx1SpNqC2Lgl3s0a7-0t20l4hpGFFZbXC_stJUt8gorbFj63Q%3D%3D.
[21] Complying with the Made in USA Standard, The Federal Trade Commission (July 2024), https://www.ftc.gov/business-guidance/resources/complying-made-usa-standard.
