Executive Order Flags Enforcement Risk for "Made in USA" Claims
On March 13, President Trump issued an Executive Order entitled "Ensuring Truthful Advertising of Products Claiming to be Made in America." The Order puts renewed attention on domestic-origin claims in advertising, particularly those made in online marketplaces and federal procurement.
The Order does not change the legal standard governing "Made in USA" advertising. Rather, it signals that regulators may increase enforcement attention to these claims.
Here's What the Executive Order Says
The Executive Order directs federal agencies, wherever appropriate, to take action against potentially deceptive American-origin claims. Specifically, the Executive Order:
- Directs the Federal Trade Commission (FTC) to prioritize enforcement against sellers and manufacturers that falsely advertise products as "Made in America."
- States the FTC "shall consider issuing" proposed regulations for online marketplaces, providing that the failure of an online marketplace to establish procedures for verifying country-of-origin claims may constitute an unfair or deceptive act or practice under the FTC Act.
- Calls on agencies responsible for country-of-origin labeling to consider regulations or guidance addressing domestic-origin claims in consultation with the FTC.
- Directs agencies overseeing federal procurement contracts to review domestic-origin representations and refer suspected misrepresentations for enforcement.
"Made in USA" Claims Are FTC Advertising Claims—Not Customs Labels
The Order highlights a point that often causes confusion: Domestic-origin advertising claims operate under a different legal framework than foreign country-of-origin labeling.
Foreign origin claims—such as "Made in Italy" or "Product of Mexico"—generally arise under customs laws administered by U.S. Customs and Border Protection (CBP) and may be mandatory for imported goods.
By contrast, "Made in USA" claims are voluntary advertising claims regulated by the FTC. The FTC evaluates these claims under Section 5 of the FTC Act, the FTC's Made in USA Labeling Rule, and the agency's guidance on U.S.-origin claims. (Separate, but related: Keep in mind that California has its own "Made in USA" labeling law as well.)
A different framework may apply in government procurement, which the Executive Order references in Section 2(d). Federal sourcing rules such as the Buy American Act and related domestic-content requirements use their own tests to determine whether a product qualifies as domestic. Those procurement standards do not govern consumer advertising claims.
So, What's the FTC's Standard for Evaluating "Made in USA" Advertising Claims?
The Executive Order does not change the FTC's longstanding standard for unqualified American-origin claims. FTC Guidance explains the standard as follows: For a product to be advertised as "Made in USA," or claimed to be of domestic origin without qualifications or limits on the claim, the product must be "all or virtually all" made in the U.S. "All or virtually all" means:
- The final assembly or processing of the product occurs in the United States;
- all significant processing that goes into the product occurs in the United States (i.e., the product is "substantially transformed" in the U.S., which refers to the U.S. customs standard); and
- all or virtually all ingredients or components of the product are made and sourced in the United States. That is, the product should contain no—or only negligible—foreign content.
If imported content plays a meaningful role, a qualified claim such as "Made in USA with imported parts" or similar language may be appropriate, provided it accurately represents the sourcing and manufacturing activities that are performed domestically.
The FTC's 2021 "Made in USA" Labeling Rule codified this framework for product labels and allows the agency to seek civil penalties for violations.
Practical Takeaway
Bottom line: The Executive Order does not rewrite the rules for "Made in USA" claims, but it sends a clear signal that regulators will be watching closely.
- Expect continued enforcement attention. "Made in USA" claims have long been a priority for the FTC. The Executive Order reinforces that focus and arrives as companies prepare for the 250th anniversary of the United States, when patriotic-themed advertising has already increased (along with consumer class action lawsuits scrutinizing those claims). Although the Order highlights online marketplaces, companies should not read the signal as limited to those platforms. Historically, FTC enforcement of American-origin claims has been broad in scope, covering both consumer advertising and claims directed to business purchasers.
- Evaluate exposure and substantiation promptly. Advertisers that make "Made in USA" claims can be proactive in managing risks. Review where those claims appear—on labels, websites, advertising materials, and marketplace listings—and confirm that those claims are supported and accurate. Companies selling through online platforms should also be prepared to respond to platform inquiries about how their claims are substantiated.
Online marketplaces, in turn, can review their own compliance frameworks—for example, ensuring that seller agreements and terms put the burden on the selling party to substantiate origin claims to the FTC's standards, and requiring sellers to review and update claims as sourcing conditions change to help ensure that claims are compliant.
As we noted in our recent March 2026 advertising law risk dashboard, "Made in USA" advertising is having a moment, partially driven by America's 250th anniversary. In telling your company's story of domestic manufacturing and patriotism, care and attention to the compliance details can help ensure that the party isn't crashed by regulatory enforcement.
+++
Kristi Wolff is a partner, Caroline Schmitz is an associate, and Nancy Felsten is a partner in the advertising group in the Washington, D.C. and New York offices of DWT. For more insights, reach out to Kristi, Caroline, Nancy, or another member of our advertising team or sign up for our alerts.