WASHINGTON, D.C. — President Donald J. Trump signed an executive order Friday directing federal agencies to step up enforcement against companies that falsely advertise products as being made in the United States, while also targeting online marketplaces and government contractors that misrepresent a product’s country of origin.
What This Means for You
- Federal regulators may more aggressively pursue companies accused of making false “Made in America” claims.
- Online marketplaces could face new rules if they do not verify country-of-origin claims by sellers.
- Government vendors found to have misrepresented American-made products could lose contract access and face referral to the Justice Department.
The order directs the Federal Trade Commission to prioritize enforcement actions when sellers or manufacturers make “Made in America,” “Made in the U.S.A.,” or similar claims that violate federal law. It also calls on agencies that oversee federal purchasing contracts to review whether products sold to the government are being accurately described as American-made.
FTC Directed to Prioritize Enforcement
Under the order, the FTC chairman is instructed to focus enforcement efforts on cases involving allegedly deceptive American-origin claims.
The administration said consumers rely on those claims when making purchases, especially through digital marketplaces, and that domestic manufacturers should not have to compete against foreign-made products marketed as American-made.
The order states that Americans have a right to “clear, accurate, substantiated, and accessible information” about whether a product advertised as made in America was actually made in the United States.
Online Marketplaces May Face New Rules
The order also tells the FTC to consider proposing regulations that would treat an online marketplace’s failure to establish procedures for verifying country-of-origin claims as a potentially unfair or deceptive act or practice.
That means e-commerce platforms could face new compliance obligations if regulators determine they are not doing enough to verify claims made by third-party sellers.
In practical terms, the order signals increased federal scrutiny of how online platforms handle product-origin advertising.
Agencies Told to Review Labeling Rules
Federal agencies with authority over country-of-origin labeling are also directed to consider regulations promoting voluntary labeling for products made or manufactured in the United States.
The order says agencies should coordinate with one another so businesses receive consistent guidance on how American-origin claims may be used.
Voluntary labeling means a company chooses to market a product as American-made rather than being required by law to place that label on the product.
Government Contractors Face Additional Scrutiny
The directive also applies to federal procurement.
Agencies overseeing government-wide acquisition contracts, Multiple Award Schedules, and other broad purchasing agreements are told to periodically review and verify “Buy American Act,” “Country of Origin USA,” and similar claims tied to products sold to the federal government.
If a contractor or vendor is found to have misrepresented a product’s American-origin status, the relevant agency is instructed to remove that product from government procurement availability and refer the matter to the Department of Justice, which could pursue action under the False Claims Act.
Next Steps
The order does not itself create new penalties, but it directs agencies to review existing rules, consider new regulations, and intensify enforcement under current law.
Any regulatory changes affecting online marketplaces or labeling practices would still require agency action consistent with existing legal authority.
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