What’s Happening Now
In July 2025, the Federal Trade Commission (FTC) sent warning letters to Amazon, Walmart, and several companies reminding them that “Made in the USA” claims must be truthful and legally substantiated. These letters noted numerous instances of potentially deceptive origin claims made by third-party sellers on online marketplaces. Federal Trade Commission
The FTC Act prohibits deceptive or misleading representations in commerce, and the Made in USA Labeling Rule (often called the MUSA Labeling Rule) sets specific standards retailers and sellers must meet when making origin claims. Federal Trade Commission
What “Made in the USA” Really Means
Under FTC policy, an unqualified claim that a product is “Made in USA” isn’t just a slogan — it’s a legal statement that requires the product be “all or virtually all” made in the United States. That means all significant parts, processing and assembly must occur domestically, and foreign components must be negligible. Federal Trade Commission
This rule applies to:
- Product listings and descriptions
- Packaging and labels
- Advertising language
- Any marketplace claim that implies U.S. origin
Even’s implied claims — like “Proudly made here” or graphics suggesting domestic origin — can fall under this standard if they create that impression. Federal Trade Commission
Why Amazon Sellers Are in the Crosshairs
Marketplace platforms like Amazon host millions of third-party listings — but they can be held accountable if sellers repeatedly make false origin claims without proof. In issuing warning letters, the FTC specifically urged online marketplaces to monitor, identify, and take corrective action against deceptive claims. Stradling – Stradling
The warning is an escalation: platforms aren’t just passive hosts — the FTC expects them to enforce compliance on behalf of consumers. Stradling – Stradling
Risks of Non-Compliance
Sellers who misuse or overstate origin claims face real legal and business risks:
- Penalties and fines issued under the FTC Act
- Listing removals or account enforcement actions by Amazon
- Civil lawsuits or class actions, especially in states with stricter labeling rules (e.g., California) JD Supra
- Reputational damage and loss of buyer trust
Historical FTC enforcement has resulted in multimillion-dollar judgments against companies that failed to substantiate origin claims — showing the agency takes these rules seriously. My Amazon Guy
How to Stay Compliant (and Avoid Trouble)
1. Confirm Your Product Meets the Standard
Before claiming “Made in USA,” verify that all or virtually all materials and processing occur in the U.S. — not just the final assembly. Federal Trade Commission
2. Use Qualified Language When Appropriate
If the product isn’t fully domestic but contains substantial U.S. components, use qualified claims (e.g., “Made in USA with imported components” or “Final assembly in USA”). These avoid implying full domestic origin while remaining truthful. Federal Trade Commission
3. Document and Substantiate
Keep thorough documentation of sourcing, manufacturing, and costs — especially if challenged by Amazon or regulators. Substantiation is key under FTC truth-in-advertising standards. Federal Trade Commission
4. Audit Listings Frequently
Review your catalog and remove or correct any unqualified, implied, or ambiguous origin claims. Amazon’s compliance teams may act quickly if the FTC flags an issue. Stradling – Stradling
What This Means for Amazon Sellers
The FTC’s increased scrutiny on origin claims is a wake-up call: marketing language matters. Sellers can no longer rely on casual or loosely interpreted “Made in USA” messaging — compliance requires accuracy, substantiation, and clear communication to consumers. Federal Trade Commission
Ensuring your claims pass legal and marketplace standards protects your brand, avoids enforcement headaches, and builds buyer trust in a crowded marketplace.
Final Thought
“Made in USA” is a valuable brand signal — when it’s true. The FTC crackdown shows that regulators, platforms, and consumers are watching, and compliance is essential for long-term success on Amazon.
