Made in USA Claims: What the FTC Rule Requires and How to Review Your Copy

If your listing, product page, or ad says “Made in USA,” the Federal Trade Commission holds that statement to one standard: the product must be “all or virtually all” made in the United States. The FTC’s Made in USA Labeling Rule (16 CFR Part 323), finalized in August 2021, turned that standard into an enforceable rule for labels — including labels shown in online and catalog marketing — and a violation can carry civil penalties. In 2026 the FTC has been enforcing it heavily. A March executive order directed the agency to prioritize unlawful “Made in USA” claims, an April enforcement sweep produced three settlements, and in July the FTC sent warning letters to seven more companies. This article explains what the rule requires, which wording counts as a claim, and how to review your own copy before you publish.

What the FTC’s Made in USA rule requires

For a product to be called Made in USA without qualification, it must be “all or virtually all” made in the United States. The Labeling Rule states the test directly:

it is an unfair or deceptive act or practice … 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.

Source: eCFR · 16 CFR Part 323, § 323.2 Prohibited acts

Three parts of that sentence matter to a seller. The final assembly or processing must be in the U.S., all significant processing must be in the U.S., and all or virtually all ingredients or components must be made and sourced in the U.S. A product assembled in the United States still fails the test if a component that is essential to how it works comes from abroad. The FTC’s guidance uses a watch as an example: even though the movements — the parts that let the watch keep time — are a small share of the cost, an unqualified Made in USA claim is likely deceptive when those movements are imported, because they are essential to the product’s function.

The rule does not require U.S. content to be disclosed on most products. It applies to manufacturers and marketers who choose to make a U.S.-origin claim, and it also applies to the specific products that other laws already require to carry an origin label. A company does not need FTC approval before making the claim, but it must be truthful and substantiated.

The rule text defines a “Made in the United States” claim broadly. It covers any unqualified representation, express or implied, that a product or service — or a specified component of it — is of U.S. origin, including wording such as “made,” “manufactured,” “built,” “produced,” “created,” or “crafted” in the United States or in America.

Source: eCFR · 16 CFR Part 323, § 323.1 Definitions

Violations of Part 323 are treated as violations of a rule under section 18 of the FTC Act (15 U.S.C. 57a). That matters because rule violations can trigger civil penalties, not just an order to stop. The FTC’s maximum civil penalty for such violations is $53,088 per violation, and the agency announced in a September 15, 2026 Federal Register notice that it would leave that amount unchanged for 2026, continuing the 2025 levels.

Unqualified, qualified, and “Assembled in USA” claims

Not every origin claim needs to meet the “all or virtually all” bar. A claim that describes the actual extent or type of U.S. content is a qualified claim, and it can be appropriate when a product includes U.S. content but does not meet the unqualified standard. The risk moves to the wording: a qualification that still leaves the impression of more U.S. content than exists is deceptive.

Sources: FTC · Complying with the Made in USA Standard; eCFR · 16 CFR Part 323

The FTC also flags comparative claims. “More U.S. content than any other brand” or “twice as much U.S. content as before” must be truthful, substantiated, and based on a meaningful difference — growing U.S. content from 2% to 4% is not a meaningful difference.

What counts as a “Made in USA” claim

A claim does not have to use the words “Made in USA” to be covered. The FTC looks at the overall, or net, impression that a label, listing, or ad conveys. U.S. symbols and geographic references — a flag, an outline of a U.S. map, or a prominent reference to a U.S. headquarters or factory — can convey a U.S.-origin claim on their own or in combination with other text and images.

Three points from the FTC’s guidance come up often in listing reviews:

• Brand names and trademarks. Using an American brand name or trademark by itself is ordinarily not a U.S.-origin claim, and a non-prominent U.S. address on a package label usually is not one either.
• Whole product lines. A statement like “Our products are made in USA” should not describe a line when only some products meet the standard. The claim has to match the products it actually covers.
• The word “created,” “produced,” or “manufactured.” These general terms are unlikely to be read as limited to one process, so they can imply an unqualified claim. “Created in USA” for a product manufactured abroad is deceptive.

Source: FTC · Complying with the Made in USA Standard

Two related regimes sit alongside the FTC rule. U.S. Customs and Border Protection (CBP) requires imported goods to be marked with their foreign country of origin, using a “substantial transformation” test. And the Textile Fiber Products Identification Act and the Wool Products Labeling Act require a Made in USA label on most clothing and textile or wool household products when the final product is made in the U.S. of U.S.-made fabric — even if the raw fiber came from elsewhere. For a garment with a neck, the country of origin must appear on the front of a label attached inside the center of the neck; catalogs and other online promotional materials for textile and wool products must disclose whether a product is made in the U.S., imported, or both.

Source: FTC · Complying with the Made in USA Standard (Textile, Wool, and Fur labeling requirements)

The 2026 enforcement picture

“Made in USA” enforcement is not theoretical. In March 2026, the White House issued an executive order, “Ensuring Truthful Advertising of Products Claiming to be made in America,” directing the FTC to prioritize enforcement actions over unlawful “Made in USA” claims. On April 14, 2026, the FTC announced three settlements and two closing letters. On July 6, 2026, the FTC issued warning letters to seven companies that appeared to misrepresent products as “Made in the USA” and one that appeared to misrepresent products as “Made in Texas.” State-level origin claims are held to the same standard as national ones.

Sources: FTC · FTC Announces “Made in the USA” Sweep (April 14, 2026); FTC · FTC Warns Companies Making Questionable ‘Made in the USA’ Claims (July 6, 2026)

The pattern in these cases is consistent with the rule text: a product can be assembled in the United States and still fail, when a component that is important to how the product works is imported. The enforcement is not limited to one industry — it has reached dartboards, flags, and footwear.

How to review your copy before you publish

You do not need the FTC’s permission to make an origin claim, and the FTC does not pre-approve advertising. You do need a reasonable basis for the claim you publish. Before you push a listing, product page, or ad live, review the copy against this checklist:

• Find every origin claim, express or implied. Search your copy for “USA,” “U.S.,” “America,” “American-made,” “made,” “built,” “produced,” “crafted,” and “created,” and also check images, badges, icons, and headings for flags, maps, or U.S. addresses that imply origin.
• Test the claim against the product, not the company. Being a U.S. company or designing in the U.S. is not the same as the product being made in the U.S.
• Trace the components. For an unqualified claim, confirm the final assembly, all significant processing, and all or virtually all components. Ask suppliers for the percentage of U.S. content in writing rather than assuming an input is fully domestic.
• Match the claim to the products it covers. A line-level “Made in USA” statement must be true for every product it describes.
• If the product does not qualify, qualify the claim or drop it. Use wording that describes the real U.S. content, or remove the origin claim entirely.
• Keep the substantiation. A reasonable basis means competent, reliable evidence you can rely on and update. If sourcing changes, the copy has to change with it.

The e-commerce checks in ByeRisk read the text of a listing, title, bullet points, and description and flag wording that needs a closer look, including origin and proof claims.

Worked examples (hypothetical)

These are illustrative rewrites, not real listings from the FTC cases. Each rewrite removes the part that outruns the evidence while keeping the reason to buy. Whether an unqualified claim is available to you depends on your own product and substantiation.

• Before: “Made in USA from global parts” (on a boot whose uppers are cut abroad). After: “Finished and inspected in our U.S. workshop” — only if that is accurate. The original is contradictory; a claim cannot be both unqualified and disclaimed in the same breath.
• Before: “100% American-made electronics.” After: “Assembled in the U.S. with imported components.” The first is an unqualified claim; the second describes the real U.S. processing, if the assembly is substantial and the last substantial transformation happened in the U.S.
• Before: “Created in USA.” After: “Designed in California. Made in Vietnam.” “Created” reads as an unqualified origin claim; naming the actual manufacturing country is clear and truthful.

What a wording check can and cannot do

A text checker can help you find and reword the copy that carries an origin claim, and it can flag wording that needs substantiation. It cannot decide whether your product is “all or virtually all” made in the U.S. — that depends on your supply chain and your evidence, not on the words alone. It also cannot read claims baked into product images or packaging photos, and it does not replace CBP marking rules, the textile and wool labeling laws, or review by a lawyer. A clean result means the wording did not match a rule; it is not a guarantee of compliance or of platform approval.

Frequently asked questions

Can I say “Made in USA” if my product is assembled in the U.S. but uses imported parts?

Not with an unqualified claim. Assembly in the U.S. is necessary but not sufficient. The product also needs all significant processing in the U.S. and all or virtually all components made and sourced in the U.S. If an essential component is imported, an unqualified claim is likely deceptive. A qualified claim such as “Assembled in USA” or “Made in USA of U.S. and imported parts” may fit instead, if it is truthful and the U.S. processing is significant.

Does the FTC pre-approve a Made in USA claim?

No. The FTC does not pre-approve advertising or labeling claims, and a company does not need permission before making one. The obligation is to have a reasonable basis — competent, reliable evidence — for the claim and to keep it accurate as sourcing changes.

What is the penalty for an unlawful Made in USA claim?

Violations of the Made in USA Labeling Rule are treated as violations of an FTC Act section 18 rule, which can carry civil penalties. The FTC’s maximum civil penalty for such violations is $53,088 per violation, and the FTC said in a September 15, 2026 notice that it will not adjust that amount for 2026. Penalties are not the only exposure: the FTC can seek consumer redress, and competitors can sue under the Lanham Act over a false designation of origin.

Is “Made in Texas” treated the same as “Made in USA”?

State-level origin claims are held to the same standard. The FTC’s July 2026 warning letters included one company that appeared to misrepresent products as “Made in Texas,” alongside seven companies that appeared to misrepresent products as “Made in the USA.”

Does a U.S. flag or a U.S. address in my listing count as a claim?

It can. The FTC looks at the overall impression. U.S. symbols and geographic references — flags, map outlines, or references to U.S. locations of headquarters or factories — can convey a U.S.-origin claim by themselves or with other wording. By contrast, a brand name or a non-prominent U.S. address on a package label by itself is ordinarily not a claim.

Sources

• eCFR · 16 CFR Part 323 — Made in USA Labeling (§§ 323.1–323.6). ecfr.gov
• FTC · Complying with the Made in USA Standard (business guidance; updated July 2026). ftc.gov
• FTC · FTC Announces “Made in the USA” Sweep, Including Three Law Enforcement Actions (April 14, 2026). ftc.gov
• FTC · FTC Warns Companies Making Questionable ‘Made in the USA’ Claims (July 6, 2026). ftc.gov
• FTC · FTC Publishes Inflation-Adjusted Civil Penalty Amounts for 2025 (maximum $53,088 per violation). ftc.gov
• Federal Register · 91 FR 58446, Civil Penalty Inflation Adjustments (September 15, 2026; no 2026 adjustment). federalregister.gov

This article explains published rules and enforcement for general information. It is not legal advice, and the agency or a court makes the final decision.

Review the origin and proof claims in your copy with the supplement claim checker, which flags “Made in USA” for review, or read more FTC context in the disclosure guide.