Made in USA Claims: Compliance Risks, FTC Enforcement, and Class Action Trends

What are “Made in USA” Claims?

“Made in USA” claims, also known as USA country-of-origin labeling or MUSA claims, have become a powerful marketing tool, especially amid the administration’s emphasis on tariffs and domestic manufacturing. Such claims seek to explicitly or implicitly emphasize a brand or product’s USA origin- but can invite FTC enforcement or consumer class actions if not properly substantiated. These include: 

• Unqualified claims: “Made in USA”, “Manufactured in USA,” “American Made,” or use of the American flag in product labeling and marketing or on company websites, without limitations or explanations.
• Qualified claims: Disclose additional information such as “Made in USA with imported parts” or “Assembled in USA from global components.

These types of claims are drawing heightened scrutiny from regulators and plaintiffs. Multinational manufacturers relying on these claims must be prepared to substantiate their claims with reliable and competent evidence. 

2025 Trends: FTC Crackdown and Class Action Surge

Class Actions Spike: As of December 1, 2025 at least 20 “Made in USA” consumer class actions have been filed,[1] which is nearly 3 times the 7 class actions filed in all of 2024.[2]

FTC Enforcement: The Federal Trade Commission (“FTC”) is actively enforcing its Made in USA Labeling Rule. The FTC declared July 2025 “Made in the USA” month, signaling its crackdown on these claims.[3] Earlier that month, the FTC issued warning letters to four companies that claimed their products were of U.S. origin and reminded them to comply with the FTC’s “Made in USA” requirements.[4] The FTC has also sent Amazon and Walmart letters regarding third-party sellers making deceptive “Made in the USA” claims about products on their online marketplaces.[5]

Understanding the Regulatory Landscape

FTC’s “all or virtually all” standard

Federal law, under the FTC’s Made in USA Labeling Rule, prohibits unqualified “Made in USA” claims unless all of the following are true:

• Final assembly or processing occurs in the United States;
• All significant processing for the product occurs in the United States; and
• All or virtually all ingredients or components are made and sourced in the United States.[6]
  • “Made in USA with imported parts”
  • “Assembled in USA from global components”

Products marketed as “Made in USA” must contain only “negligible” foreign content.[7] But the FTC has not set a precise numerical threshold for what counts as negligible. Instead, the standard is qualitative: even if an imported part represents a small fraction of the product’s overall cost, it can still undermine an unqualified claim if the part is essential to the finished product.[8] 

California Law

Enterprising plaintiffs’ attorneys are increasingly targeting companies making “Made in USA” claims to bring consumer false advertising class actions under state consumer protection statutes. In addition to robust consumer protection statutes, California has its own “Made in USA” law. California Business and Professions Code § 17533.7 permits products manufactured or produced in the United States with foreign components to use country‑of‑origin labeling if the foreign parts do not exceed 5% of the product’s wholesale value, or 10% if the manufacturer demonstrates that the foreign components are unavailable domestically and cannot be manufactured in the United States.[9]

California’s 5% and 10% foreign‑content thresholds are often regarded as less stringent than the FTC’s “all or virtually all” standard, since the FTC evaluates not only cost but also the functional significance of a component. As a result, compliance with California’s requirements does not guarantee compliance with the FTC’s rule, and companies selling products in California must satisfy both standards.

Qualified Claims: How to Avoid Misleading Impressions

A qualified claim acknowledges that some foreign content or processing is present, while still emphasizing U.S. manufacturing. Examples include:

Under FTC guidance, qualified claims are permissible if they are truthful, clear, and substantiated.[10]However, even qualified “Made in USA” claims may be deceptive if they exaggerate or misrepresent the extent of U.S. content or processing.[11] While the FTC explicitly recognizes that accurate qualified claims are appropriate, California law is silent. A few federal courts in California have concluded that qualified labels are permissible under state law, but uncertainty remains as to whether such claims are permissible. 

According to the FTC, qualified “Made in USA” claims must contain a clear and conspicuous qualification “immediately adjacent” to the representation, accurately conveying the extent to which the product contains foreign parts, components, or processing.[12]FTC guidance emphasizes that qualified claims must not only be truthful but also avoid creating an overall misleading impression when combined with imagery or other marketing elements.[13]

“Made in USA” claims are evaluated based on the overall net impression of the marketing or advertising.[14] The key question is what the material conveys to a reasonable consumer when considered in its entirety. Even if a claim is truthful in isolation, it may still be misleading if presented alongside images, phrases, or other elements that create a false impression about U.S. manufacturing or content. Use of imagery such as the American flag or geographic outlines of the United States, for example, can create implied claims of U.S. origin.[15]

2025 Lawsuits Highlight Risk

• April 2025: A California jury found a tea company liable for $2.36 million in damages in a class action alleging that consumers were misled by the “Manufactured in USA” packaging where the tea leaves were sourced outside the USA.
• August 2025: A lawsuit challenged marketing phrases such as “USA gold,” “America’s pencil,” and “a symbol of American Craftsmanship” on packaging for pencils as false and misleading.
• October 2025: Plaintiffs alleged that placing an American flag next to the statement “owned by Florida farmers” on an orange juice carton created an implied “Made in USA” claim under FTC guidance.
• November 2025: A lawsuit claimed that “Made in USA” representations, paired with an American flag image on disposable aluminum pans, were deceptive.
• November 2025: Another suit targeted packaging that displayed “America’s coffee” prominently on the front label along with an American flag, arguing this misled consumers into believing the product was entirely U.S.‑made.

Tips for Compliance

• Verify that all claims are truthful and substantiated: Like all representations, “Made in USA” claims, whether unqualified or qualified, must be truthful and supported by accurate and reliable evidence.
• Audit supply chains: Request and maintain detailed records of sourcing and manufacturing to substantiate claims.
• Use clear qualifications: Unless the FTC’s stringent “all or virtually” standard can be met, avoid making unqualified claims. Instead, place disclaimers immediately next to the claim, with equal prominence and clarity.
• Monitor enforcement and litigation trends: Track FTC actions and California litigation to anticipate risks.
• Plan for dual compliance: Structure claims to meet both FTC and California standards simultaneously.
• Consult outside counsel: seek legal advice to ensure claims are properly substantiated, compliant with both the FTC and California requirements, and defensible against potential class action challenges.

For further guidance on “Made in USA” compliance, contact our Mintz Consumer Products Litigators for a risk assessment.

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