It’s the FTC (Federal Trade Commission) who is in charge of taking care of deceptive and unfair market practices. In the FTC Act, the Commission gets the power to take strict actions against a U.S product making false or misleading claims.
According to the recent updates, FTC requires that any product which is advertised as the USA made should be all or virtually all made in the USA. The FTC even issued an Enforcement Policy guidelines for the marketers to better understand on how to make qualified and non-qualified Made in USA claims using the ‘all or virtually all’ rule.
Common FAQs related to the Made in USA Standards
Still, it’s common to have doubts, and that’s why I thought to compile a few of the common faqs that people generally ask regarding the Made in USA standards. They are as follows:
What are the basic requirements for getting the Made in USA label?
All the label and claiming authorities are undertaken by the FTC (Federal Trade Commission). As per FTC rules, any product which claims to be USA-made or Made in America should have their domestic origins that remain consistent with the decision and orders by FTC.
Also, the products which fall in the ‘all or virtually all’ category can claim for an unqualified ‘Made in USA’ but provided that the owner should be able to substantiate the unqualified claim too.
Is it compulsory to get the Made in USA label for all USA-made products?
Well, if the goods are not of foreign origin, then there is no need of mentioning the country of origin. Also, FTC does not require the county of origin except for textile, automobile, and wool products.
What does ‘all or virtually all’ mean?
All or virtually all means, the product which has got all its significant parts and the processing carried out in the US while only a negligible amount of work is done in the foreign place. A lot of factors are considered before a product is granted this standard.
Some of the factors like where are the final processes carried out, and when is the foreign origin element added – is it in the beginning or towards the end?
How can I substantiate my claim?
You should have reliable evidence which supports your claim, both for qualified as well as unqualified Made in USA claims. Also, if you are the manufacturer then you should keep a check on the supply and can ask for the evidence for the supplier’s goods.
Hope this brief FAQ set cleared some of the FTC and Made in USA Concepts for you. You can get the revised policy from the right authorities and understand the terms in depth.