CTA Urges FTC Not to Put Cart Before Horse on Made in USA Ad Policy Changes

The FTC should “proceed cautiously” as it ponders changes to its Made in USA enforcement policy and weighs developing a new rule, commented CTA in docket FTC-2019-0063. The commission sought industry feedback on how consumers “interpret” Made in USA ad and marketing claims and on the pros and cons of enforcing a possible “bright-line” standard that would greenlight a Made in USA claim only if a prescribed percentage of a product’s costs is domestically based. This enforcement policy is 22 years old, said CTA Friday. If the FTC acts on reassessment, “it must begin with updated consumer perception evidence,” said the association. “A new study, measuring consumers’ current attitudes and understandings of Made in USA claims, provides a better way to develop potential alternative standards than does considering input on alternatives in the absence of suitable empirical evidence.” Developing a new rule without the evidence “puts the cart well before the horse,” said CTA.