The FTC is pushing back against false 'Made in the USA' claims
The agency has dubbed July 2025 'Made in the USA' month


The next time you see a "Made in the USA" label on a product, you might want to think twice about its accuracy. The Federal Trade Commission has been cracking down on what it calls "deceptive" claims of products being manufactured in the U.S. that are actually made overseas. The agency has been pushing for more transparency against this kind of business practice and even dubbed July 2025 "Made in the USA" month. But why are companies doing this and how is the FTC trying to stop it?
Why are companies doing this?
Many companies place a "Made in the USA" label on their items (whether they are made in the U.S. or not) to entice buyers, according to the FTC. This label "provides consumers with confidence that when they buy something that says 'Made in the USA' they are actually supporting American workers, American manufacturers, and American communities," said FTC Chair Andrew N. Ferguson in a press release.
It appears that these labels do play a part in the kinds of products Americans buy. A "recent poll found that 61% of Americans stated that whether a product was 'Made in the USA' played a factor in their purchasing decisions," said the FTC, though the agency did not cite what poll it was referring to. Many Americans may "believe that American-made goods are higher quality and better for the environment than foreign-produced alternatives," which can influence which products the average consumer buys.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
How is the FTC fighting back?
The agency is working to enforce its guidelines around "Made in the USA" products and pushing companies to comply. To use this label, the FTC has "required that a product advertised as Made in the USA be 'all or virtually all' made in the U.S.," according to the agency's product standards.
This means either the "final assembly or processing takes place in the U.S., or that all 'significant' processing takes place in the U.S.," said USA Today. Products "with 'all or virtually all' components made and sourced in the U.S. also qualify." However, the FTC also takes into account other factors, such as how much of the "product's manufacturing costs are U.S.-based and how important foreign inputs are to the final product's form or function," Kathleen Benway, a partner at the law firm Alston & Bird and a former FTC official, told USA Today. Figuring out whether a product is made in the U.S. "can be tricky" and is "often determined on a case-by-case basis."
As part of these individual circumstances, Amazon and Walmart were given warnings after the FTC reportedly "learned of several instances where third-party sellers falsely claimed their products were made in the United States," said Reuters. The agency has said that some products are not truly made in the U.S. and "violate federal law and Amazon's and Walmart's codes of conduct."
The agency also sent warning letters to four smaller companies "which claim their goods are of U.S. origin" after the FTC found "indications that the products are imported, either wholly or in part," said the retail news outlet RetailTouchPoints. And a 2024 investigation into homeware chain Williams Sonoma found "800-plus examples of products marketed as 'Made in the USA' or 'Crafted in America' when they were actually imported," Laura Smith, the legal director of the nonprofit Truth in Advertising, told CBS News. This "led to the largest 'Made in the USA' civil penalty in history," with a $3 million fine levied against Williams Sonoma.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Justin Klawans has worked as a staff writer at The Week since 2022. He began his career covering local news before joining Newsweek as a breaking news reporter, where he wrote about politics, national and global affairs, business, crime, sports, film, television and other news. Justin has also freelanced for outlets including Collider and United Press International.
-
Quiz of The Week: 27 September – 3 October
Quiz Have you been paying attention to The Week’s news?
-
Hooray for Brollywood: the UK’s film industry is booming – for now
In The Spotlight US production giants are moving operations across the pond, but Trump tariffs threaten to bring British golden era to a sudden end
-
Child trust funds explained as over £1.5 million remains unclaimed
The Explainer HMRC data shows hundreds of thousands of young people have yet to claim money they are entitled to
-
Rising costs are making it harder for people to afford pets
Under the Radar Shelters are filling up as a result
-
Electronic Arts to go private in record $55B deal
speed read The video game giant is behind ‘The Sims’ and ‘Madden NFL’
-
What Saudi Arabia wants with EA video games
In the Spotlight The kingdom’s latest investment in gaming is another win for its ‘soft power’ portfolio
-
Gen Z is facing a credit score crisis
In the Spotlight The average Gen Z credit score has dropped three points in 2025
-
Who benefits from Trump’s new $100,000 H-1B visa fee?
In the Spotlight American workers might see gains. But there are drawbacks.
-
The potential warning sign of an auto lender’s bankruptcy
In the Spotlight Tricolor collapse an ‘extreme example’ of economy’s challenges
-
Trump proposes ending quarterly earnings reports
Speed Read The SEC would have to approve any changes
-
Job hugging: the growing trend of clinging to your job
In the Spotlight People are staying in their jobs longer than ever