On August 16, 2024, Leonard Gordon was interviewed by SupplyChainBrain on the Federal Trade Commission’s (FTC) recent action pertaining to verifying “Made in USA” claims for a variety of manufactured products. According to SupplyChainBrain, FTC staff recently released new guidance on how manufacturers can and should substantiate “Made in USA” claims for their products.
“The FTC has been active over the last 10–20 years on ‘Made in USA’ claims… It has been a constant area of emphasis,” said Gordon, explaining how the FTC contends with some American consumers’ willingness to pay a premium for domestically produced goods.
Gordon shared that violations of the FTC’s standards can result in penalties exceeding $50,000 per violation, with most cases ultimately settling, “because of the enormous hammer that FTC holds.”
Gordon also explained that there are many guidelines to be followed, even when using broad terms like “assembled.” “It has to be more than just a turn of a screwdriver,” Gordon said. “There’s got to be some transformation of the product in the assembly.”
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