WASHINGTON, D.C. — Federal regulators have taken action against three companies accused of falsely marketing products as “Made in the USA,” securing settlements that include financial penalties and new restrictions on advertising claims.
What This Means for You
- Companies must prove products are “all or virtually all” made in the U.S. to use the label
- Consumers may receive refunds tied to deceptive marketing claims
- The FTC is increasing enforcement of false “Made in USA” advertising
The Federal Trade Commission announced the enforcement actions following a recent federal directive aimed at strengthening standards for domestic-origin claims in product labeling and advertising.
A “Made in USA” claim requires that a product be “all or virtually all” manufactured in the United States, meaning that significant parts, processing, and labor must be domestic.
Companies and Allegations
The FTC filed complaints against three companies, alleging violations of federal law by making unqualified claims that their products were made in the United States.
TouchTunes Music Company was accused of falsely advertising electronic dartboards as American-made despite using key imported components such as computer chips and monitors.
Americana Liberty LLC and related entities were accused of marketing flags and patriotic products as “100% Made in the USA” even though some items were fully imported or contained significant foreign materials.
Oak Street Manufacturing Company, which does business as Oak Street Bootmakers, was accused of claiming its footwear was entirely made in the United States despite sourcing components and performing some manufacturing steps overseas.
Settlement Terms
The settlements require the companies to stop making misleading origin claims and provide financial restitution to consumers.
TouchTunes agreed to pay $625,000, while Americana Liberty and related parties agreed to pay $167,743. Oak Street agreed to pay $75,000.
The agreements also prohibit future misrepresentations about product origin and require companies to notify consumers about the settlements.
FTC officials said the actions are intended to protect consumers and ensure fair competition.
“We will robustly enforce the ‘Made in the USA’ standard so that the American people have confidence that their purchases of American-made products support American workers and manufacturing,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.
Additional Actions
The FTC also issued warning letters to two additional companies that agreed to change their marketing practices after being contacted by regulators.
Officials said the agency may continue monitoring those companies and could pursue further legal action if necessary.
Next Steps
The proposed settlements will take effect after approval by federal courts, at which point they will carry the force of law and require ongoing compliance.
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