According to a government posting, the Federal Trade Commission (FTC) has finalized a new rule that will help it crack down on Made in the USA fraud. This fraud takes place when a marketer attaches a “Made in the USA” label to a product when the statement is not true. The rule goes into effect on August 13, 2021.
Under the new rule, marketers can still attach “Made in the USA” labels to their products. However, they can only do so if “all or virtually all” of the product is made in the United States. If a manufacturer can’t make this showing, and still attaches a label on its product, then it’s making a false and unqualified claim about its product.
In response to such a false and unqualified claim, the FTC can do any of the following:
The posting states that one of the goals behind the new rule is to help small businesses. According to the FTC, the new rule will “especially benefit small businesses that rely on the Made in the USA label, but lack the resources to defend themselves from imitators.”
Brand Focus Digital supports the FTC’s new rule 100 percent of the way. We strongly disfavor merchants making unfounded and false claims about their products, including the country in which those products get made. We’ll continue to monitor the enforcement of the new rule and provide updates where appropriate.
Brand Focus Digital helps manufacturers sell their products easier and more efficiently on Amazon and other online retailers - in North America and across the globe. We work tirelessly and diligently with the makers of (and not limited to):
Brand Focus Digital’s talent has decades of experience working at Amazon as well as other online retailers. Contact us now to learn more on how we can help maximize profits for your brands.
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