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White House Orders FTC Crackdown on Deceptive ‘Made in USA’ Claims With Potential Marketplace Verification Rules

The directive reinforces the FTC’s existing standard rather than creating new legal requirements.

Overview

  • The March 13 executive order instructs the FTC to prioritize enforcement against misleading American‑origin claims on products and advertising.
  • The order urges the FTC to consider regulations that would treat an online marketplace’s failure to verify third‑party country‑of‑origin claims as a potential unfair or deceptive practice.
  • The FTC’s “all or virtually all” threshold, codified in the 2021 Made in USA Labeling Rule, remains the governing standard for unqualified origin claims.
  • Federal procurement agencies are directed to step up Buy American Act reviews and refer misrepresentations to the Department of Justice, increasing False Claims Act exposure for contractors.
  • Legal advisers expect a sharper enforcement posture and greater compliance burdens for brands, retailers, and platforms, with cautions against adopting voluntary labels that cannot be substantiated.