FTC OKs 4-1 'Made in USA' NPRM That Would Boost Enforcement Authority

The FTC approved a proposed rule this week 4-1 to boost authority to impose penalties for “Made in USA” labeling violations and apply those rules to online advertising and marketing materials. The proposal would prohibit any Made in USA claims on products unless their "final assembly or processing" occurs in the U.S. It would stipulate all "significant processing that goes into the product" must happen domestically and that all its components must be produced in the U.S. The regulations would supersede state Made in USA laws, unless those rules are more stringent than the proposed federal standard. The FTC has never issued Made in USA regulations, instead directly enforcing provisions of the FTC Act that prohibit false labeling claims. Commissioner Noah Phillips' dissent said the move exceeds the agency's authority. Commissioner Rohit Chopra said he "would have preferred a broader prohibition on Made in USA fraud," but "the proposed rule strikes a reasonable compromise." Commissioner Christine Wilson said the "NPRM seeking comment does not prejudge the outcome of the process, which must observe the boundaries of our statutory authority."