“Made in USA” is not just a marketing claim, it is a claim of origin with strong legal protections against misuse. 

The Federal Trade Commission (FTC) enforces a strict national standard, U.S. Customs has its own country-of-origin rules for imports, and several industries (textiles, wool, fur, and meat/poultry/eggs) have sector-specific mandates. Missteps can trigger civil penalties, injunctions, and class actions lawsuits. 

The FTC’s “All or Virtually All” Standard 

The FTC polices U.S.-origin claims under Section 5 of the FTC Act and the Made in USA Labeling Rule (16 C.F.R. Part 323). If you claim a product is “Made in USA”  it must be “all or virtually all” made in the United States. Meaning final assembly or processing occurs in the United States, significant processing happens here, and all or nearly all components are U.S.-sourced. Marketers must have competent and reliable evidence to substantiate the claim before making it. 

Unqualified vs. Qualified Claims 

• Unqualified “Made in USA”: Reserved for products that meet the “all or virtually all” test. 
• Qualified claims: If foreign content or processing is more than negligible, the claim must be clearly qualified (e.g., “Made in USA with imported components,” “Assembled in USA with domestic and imported parts”). Qualifications must be clear, prominent, and not misleading. 

Qualified Examples 

To limit a statement, manufacturers and producers might use language such as: 

• “Made in USA with domestic and imported components.” 
• “Designed and engineered in the USA; assembled in Mexico.” 
• “Assembled in the USA from imported modules.” 

For more information, see the FTC 2014 enforcement policy on U.S. Origin Claims. In 2021, the FTC codified the standard for labels; including physical labels, packaging, and digital point-of-sale claims (like product pages and online catalogs) and gave itself explicit authority to seek civil penalties for violations of the Rule. 

Other Product Rules 

Other products can have their own marketing guidelines, here are some of the more well known: 

Penalties for Mislabeling Products as Made In the USA 

The FTC adjusts civil penalty maximums for inflation annually. In February 2025, the Commission increased the maximum civil penalty for relevant violations to $53,088 per violation (up from $51,744). The FTC also counts violations separately, each mislabeled product, page, or instance can be treated as a separate violation. This can lead to very large exposure in enforcement actions or settlements. 

Consumer can file consumer lawsuits for false and misleading advertising, when their purchase price or their decision to purchase a product was influenced by the false advertising of origin. 

Consumer in some states like California can pursue additional claims against companies who mislabel origin statements using laws such as the California Unfair Competition Law (UCL). 

Competitors can file claims alleging harm to their own sales from lost sales. 

Recent Settlements and Verdicts 

Here are some recent settlements and verdicts as a result of made in the U.S. claims: 

• $2,000,000 civil penalty by the FTC against a tractor manufacturer regarding unlabeled foreign content. 

• $3.175 million paid by a large retailer in civil penalties for violating prior made in the US orders. 

• $2.36 million won by consumers represented by Schneider Wallace Cottrell Kim, for tea labeled as “Manufactured in the USA 100%”. 

Schneider Wallace Cottrell Kim – $2.36 Million False Advertising Verdict  

Schneider Wallace has a history of representing consumers for false advertising. In April 2025, a California jury awarded $2.36 million to a class of consumers in a false advertising lawsuit against Bigelow Tea, finding that the company misled buyers by labeling its products “Manufactured in the USA 100%” despite using imported ingredients and packaging. 

The verdict is among the largest jury awards in recent years involving deceptive “Made in USA” claims. The case challenged Bigelow’s use of domestic origin labeling on tea products that were not fully manufactured with U.S.-sourced components — in violation of California’s consumer protection laws.  

The jury’s decision follows a prior judicial ruling that the label was deceptive and “literally false” under California law. The verdict awards monetary damages to California consumers who purchased Bigelow’s tea products bearing the misleading label.  

“This is a significant moment for truth in labeling,” said Peter Schneider, who represented the class. “When companies market themselves using patriotic origin claims, those claims must be honest. This verdict affirms that consumers deserve transparency — and accountability.”  The class was represented by Todd M. Schneider, Peter B. Schneider and Jason H. Kim of Schneider Wallace Cottrell Konecky and Aubry Wand of the Wand Law Firm PC.  

False Advertising Law Firm 

If you purchased a product that was advertised or labeled as “Made in USA” but later discovered it was imported or contained significant foreign components, you may have legal rights. Our firm investigates cases involving false or misleading advertising and consumer deception. 

Contact us for a free and confidential consultation to report a misleading “Made in USA” claim or learn whether you may be entitled to restitution or other relief.