WASHINGTON — Federal Trade Commission Chairman Andrew Ferguson is leading a renewed crackdown on companies accused of misleading American consumers by placing “Made in the USA” claims on products that were manufactured entirely or substantially overseas.
The FTC recently sent warning letters to seven companies that appear to have misrepresented products as American-made and to an eighth company accused of falsely marketing products as “Made in Texas.” The products involved include drums, industrial laser equipment, measuring machines and e-cigarettes.
This is about more than a label.
When Americans intentionally purchase products marked “Made in the USA,” they are often choosing to support American workers, American manufacturing and local communities. Companies that use that label dishonestly are not only deceiving consumers; they are also gaining an unfair advantage over businesses that have made the investment necessary to manufacture their products here at home.
Under the FTC’s Made in USA Labeling Rule, an unqualified claim that a product was made in America generally means the product must be “all or virtually all” manufactured in the United States. A company cannot import most of a product, perform minor assembly in America and then market it as completely American-made without properly qualifying that claim.
President Donald Trump strengthened that enforcement effort earlier this year by directing the FTC to prioritize unlawful “Made in USA” advertising claims. The administration’s position is clear: Consumers deserve the truth, and businesses that genuinely employ American workers should not be forced to compete against companies using patriotism as a dishonest marketing tool.
The warning letters were sent to A&F Drum Company, Z-Tech Advanced Technologies, Vtron, Helmel Engineering Products, NebTech, Lucky Bar Holdings and My Vape Order. The FTC said evidence indicated that some of the products promoted as American-made were imported in whole or in significant part.
The latest warnings follow three enforcement actions announced in April involving sellers of electronic dartboards, patriotic flags and display products, and footwear. Those companies agreed to stop making unlawful country-of-origin claims and collectively provide hundreds of thousands of dollars for consumer redress.
In one case, the FTC alleged that TouchTunes falsely advertised electronic dartboards as made in America even though essential components, including computer chips, cameras and monitors, were produced outside the United States. The proposed settlement included $625,000 for consumer redress, the largest amount obtained in a Made in USA Labeling Rule case at that time.
Another enforcement action involved companies accused of selling flags and patriotic display products bearing claims such as “100% Made in the USA” and “Built by Americans for Americans,” even though some products were allegedly imported entirely from China or contained significant Chinese components.
That kind of deception is especially insulting.
A company should not be allowed to wrap a foreign-made product in the American flag, use patriotic language to gain the trust of consumers and then quietly send the profits overseas. Patriotism should never be reduced to a dishonest sales strategy.
There is nothing wrong with selling imported products when companies tell consumers the truth. The violation occurs when businesses deliberately create the impression that a product was made by American workers when it was not.
Ferguson has warned that “Made in the USA” is more than a slogan. He said consumers should be confident that purchasing an American-labeled product genuinely supports American workers and the American economy, and that companies making false claims should expect to hear from the FTC.
The FTC’s crackdown sends an overdue message: Tell the truth, properly disclose where products are manufactured and stop exploiting Americans who are intentionally trying to support their own country.
American-made should mean American-made. Anything less is deception.
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