“Made in USA” Marketing Scrutiny Heats Up With New Round of FTC Warning Letters
On July 6, 2026, the Federal Trade Commission continued its enforcement against non-compliant “Made in the USA” claims by issuing warning letters to a new group of manufacturers and retailers. The FTC’s latest warning letters went to seven companies “that appear to have misrepresented certain products as ‘Made in the USA’” and another company “that appears to have misrepresented certain products as ‘Made in Texas.’”[1] Together with the executive action and enforcement activity discussed below, these letters send a strong signal that federal scrutiny of “Made in the USA” claims is a firmly established enforcement priority and underscores the importance of proactive compliance.
The FTC’s Recent Challenges to “Questionable” Made in the USA Claims
The FTC’s latest warning letters implicate companies across industries, including sellers of drums, industrial laser machinery, coordinate measuring machines, and e-cigarettes.[2] For example, the A&F Drum Co. warning letter asserts that the company “has made unqualified domestic origin claims on the A&F Drum Co. website as well as social media accounts and posts,” including that:
the Product is “handmade in Austin, Texas”;
the Product is “handmade in Austin by local drummers and artisans using locally sourced and exotic materials . . . .”;
the Product is “made in Texas”; and
the Frequently Asked Questions page states that “we are a family owned and operated company that chose to hand make drums (all shells, lugs, hoops, spurs, floor tom legs, all brackets) out of Raw Metals and Woods here in Austin, TX using locally sourced materials and hiring local drummers and artisans, and that is definitely expensive.”[3]
The FTC’s review led it to believe that the company “may be importing, in whole or in significant part, the Product despite making these unqualified domestic origin claims.”[4] Although the FTC did not make a formal determination at this stage, it warned that the company must “immediately” comply with relevant laws and regulations or face a potential enforcement action, including civil penalties of up to $53,088 per violation.[5] The other FTC letters targeted similar claims it viewed as unsupported and issued similar warnings.
In an accompanying press release, the Director of the FTC’s Bureau of Consumer Protection warned that “when Americans spend their hard-earned dollars on goods marketed as ‘Made in the USA,’ they deserve to have confidence that these products were all or virtually all made in this country,” and “we will hold accountable any company that undermines Americans’ trust with misleading or outright false U.S. origin claims.”[6]
Importantly, these comments are not a one-off warning but part of a broader enforcement trend. For example, in 2026 alone:
President Trump issued an Executive Order, “Ensuring Truthful Advertising of Products Claiming to be made in America,” directing the FTC to prioritize enforcement actions against unlawful “Made in USA” claims.
The FTC announced three law enforcement actions settling allegations that sellers of American flag products, footwear, and electronic dartboards violated Section 5 of the FTC Act and the Made in USA Labeling Rule. The companies agreed to stop making unlawful “Made in USA” claims and pay $75,000 to $625,000 in redress to injured consumers.
President Trump nominated to the FTC WeatherTech founder David MacNeil, a business owner known for his commitment to American-made products. The nomination followed the FTC’s 2025 tightening of oversight of Made-in-USA claims, including its declaration of July 2025 as “Made in the USA Month” and warning letters to companies with allegedly misleading marketing.
Compliance Under the FTC Act and the MUSA Labeling Rule
The FTC typically relies on Section 5 of the FTC Act and the Made in USA Labeling Rule (“MUSA Labeling Rule”) when scrutinizing “Made in the USA” claims. Section 5 prohibits unfair or deceptive acts or practices in or affecting commerce.[7] The MUSA Labeling Rule is more specific and prohibits labeling any product as “Made in the United States” unless final assembly or processing occurs in the U.S., all significant processing occurs in the U.S., and all or virtually all ingredients or components are made and sourced in the U.S.[8]
Conducting a compliance review, however, is not always straightforward. A “Made in USA” claim can be express or implied. In particular, implied claims can be fraught with compliance issues because there is no bright-line test. Instead, “the FTC focuses on the overall impression the advertising, label, or promotional material conveys to consumers.”[9] The FTC also considers several factors when assessing whether a product is “all or virtually all” made in the U.S.For example, although final assembly or processing must occur 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.”[10]
Even for qualified claims, the FTC cautions against suggesting more domestic content than a product contains. The FTC advises against using qualified claims unless the product has significant U.S. content or processing, reinforcing the need for careful substantiation and legal review.
What Should Companies Do Now?
Given increased FTC enforcement and also the potential for class actions, companies should take steps to minimize exposure, including:
Audit “Made in USA” and other origin claims, including component sourcing and final assembly;
Maintain documented substantiation for each claim and align labeling and marketing with the MUSA Labeling Rule, including ensuring packaging and marketing materials are up to date;
Monitor third-party sellers on marketplaces; and
Periodically assess compliance risks, especially for complex or fluctuating supply chains and for implied or qualified claims.
In short, the FTC has repeatedly emphasized that manufacturers and marketers making Made-in-USA claims need “competent and reliable evidence to back up the claim that its product is ‘all or virtually all’ made in the U.S.”[11] Companies that make or rely on U.S.-origin claims should ensure those claims remain accurate as sourcing, assembly, and marketing practices evolve. A proactive review now can help reduce the risk of FTC scrutiny, consumer redress, civil penalties, and follow-on litigation.
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] FTC Warns Companies Making Questionable ‘Made in the USA’ Claims, FTC Press Release (July 6, 2026), https://www.ftc.gov/news-events/news/press-releases/2026/07/ftc-warns-companies-making-questionable-made-usa-claims?utm_campaign=FTC%20warns%20companies%20makin&utm_content=1783359369&utm_medium=social&utm_source=linkedin.
[2] Id.
[3] Warning Letter Regarding “Made in the USA” Representations to A&F Drum Company LLC, FTC (July 6, 2026), https://www.ftc.gov/system/files/ftc_gov/pdf/af-drum-musa-warningletter.pdf.
[4] Id.
[5] Id.
[6] FTC Warns Companies Making Questionable ‘Made in the USA’ Claims, FTC Press Release (July 6, 2026), https://www.ftc.gov/news-events/news/press-releases/2026/07/ftc-warns-companies-making-questionable-made-usa-claims?utm_campaign=FTC%20warns%20companies%20makin&utm_content=1783359369&utm_medium=social&utm_source=linkedin.
[7] 15 U.S.C. § 45(a)(1).
[8] 16 C.F.R. Part 323; Complying with the Made in USA Standard, FTC (July 2024), https://www.ftc.gov/business-guidance/resources/complying-made-usa-standard.
[9] Complying with the Made in USA Standard, The Federal Trade Commission (July 2024), https://www.ftc.gov/business-guidance/resources/complying-made-usa-standard.
[10] Id.
[11] Id.
