Stars, Stripes, and Substantiation: The Boom in "Made in USA" Claims—and Lawsuits

Red, white, and booming: "Made in USA" advertising is having a moment. Brands across industries are leaning into patriotic themes, tapping into consumer enthusiasm for American-made goods, domestic job creation, and a good old-fashioned "Buy American" ethos. From Ford's "Committed to America" campaign touting that "80% of the vehicles we sell in America are assembled in America" to Chevrolet's nostalgic revival of "The Heartbeat of America," brands are waving the flag with pride—and, increasingly, with legal risk.

This surge in flag-wrapped marketing has brought with it a spike in scrutiny. Consumer false advertising lawsuits targeting allegedly deceptive "Made in USA" claims are on the rise: more than a dozen have been filed so far in 2025, up from seven in all of 2024. And that's just the tip of the iceberg—pre-suit demand letters challenging these claims are likely far more common. As companies seize on the branding opportunity presented by shifting global trade dynamics, they must also navigate a legal landscape where "Made in USA" claims are held to high—and enforceable—standards.

So, What Are the Rules?

At the federal level, the Federal Trade Commission (FTC) is the primary enforcer of "Made in USA" advertising claims. The standard for making an unqualified claim is no small feat. According to FTC guidance, products must meet three key criteria:

1. all or virtually all significant parts and processing must be of U.S. origin;
   
   
2. the product must be "substantially transformed" in the U.S. (in line with U.S. Customs standards); and
   
   
3. final assembly or processing must occur in the U.S.

In 2021, the FTC finalized a "Made in USA Labeling Rule" that not only codifies its guidance but also gives the agency teeth—specifically, the power to impose civil penalties of up to $53,000 per violation. And the agency isn't shy about using that power. In fact, in July 2025—designated "Made in USA Month" by FTC Chair Andrew Ferguson—the agency marked the occasion not with fireworks, but with a flurry of warning letters.

California Plays by Its Own Rules

While the FTC is the main federal watchdog, California has its own statute—Business & Professions Code § 17533.7—which historically imposed a stricter standard. A 2015 amendment softened the law slightly, allowing "Made in USA" claims if no more than 5% of the product's wholesale value comes from foreign-made components—or up to 10% if those components aren't available domestically. Even with that flexibility, the California rule continues to pose challenges for manufacturers navigating increasingly complex, globalized supply chains.

What's an Advertiser to Do?

The key is ensuring the claim—whether express or implied—matches the underlying facts. Even with today's complex supply chains, many companies can support unqualified "Made in USA" claims. With the bar for unqualified claims set high, and the dynamic nature of product sourcing, other brands play it safe by using qualified language like "Made in USA with global components," "Assembled in USA," or simply referencing support for American jobs. Even imagery, like American flags or geographic outlines of the U.S., can create implied origin claims that require substantiation.

Bottom line: before wrapping a product in stars and stripes, advertisers should carefully review their supply chains in conjunction with both federal and state standards. Because when it comes to "Made in USA" claims, regulators, courts, and plaintiffs alike are watching closely. And if your claim doesn't hold up? That patriotic fanfare may come with a hefty price tag.