Overview
- Signed March 13, the executive order instructs the FTC to prioritize enforcement against deceptive U.S.-origin advertising.
- The order tells the FTC to consider rules for online marketplaces, where failing to verify sellers’ country-of-origin claims could be treated as an unfair or deceptive practice.
- The FTC’s legal test remains unchanged, requiring products to be “all or virtually all” made in the United States for unqualified claims, consistent with the 2021 labeling rule that enables civil penalties.
- Federal procurement agencies are directed to scrutinize domestic-origin representations and refer suspected misstatements to the Department of Justice.
- Legal analysts warn of heightened risk of investigations, warning letters, consent orders, civil penalties, and potential consumer class actions, prompting calls for immediate claim audits and substantiation.