Executive Summary
President Trump signed an Executive Order (“EO”) on March 13, 2026, titled “Ensuring Truthful Advertising of Products Claiming to be Made in America.” The EO directs the Federal Trade Commission (“FTC”) to prioritize enforcement actions against deceptive Made in America claims and signals a significant expansion of the administration’s focus on fraudulent country-of-origin advertising, particularly in digital marketplaces. While the EO does not change the substantive legal standard for Made in America claims, companies should expect heightened enforcement scrutiny and should evaluate their current compliance practices accordingly.
Overview of the EO
The EO establishes as administration policy that Americans have a “right to clear, accurate, substantiated, and accessible information” regarding whether products marketed as Made in America are actually manufactured in the United States. The EO reflects concerns that foreign manufacturers and sellers are exploiting digital marketplaces to falsely advertise products as American-made, thereby deceiving consumers and harming legitimate domestic manufacturers.
The EO contains several key directives. First, it instructs the FTC Chairman to prioritize enforcement actions in cases where Made in America claims constitute a violation of law, including unfair or deceptive acts or practices. The FTC is directed to consult with other executive departments and agencies with subject-matter expertise when evaluating specific products. Second, the EO directs the FTC to consider issuing proposed regulations providing that an online marketplace’s failure to establish procedures for verifying country-of-origin claims may itself constitute an unfair or deceptive act or practice under the FTC Act. Third, agencies with oversight of country-of-origin labeling are directed to consider promulgating regulations promoting voluntary country-of-origin labeling for domestically manufactured products, with a focus on providing consistent guidance to American businesses. Fourth, the EO requires agencies overseeing government-wide acquisition contracts to periodically review and verify Buy American Act and American-origin claims for products acquired through federal contracts. Contractors or vendors found to misrepresent American-origin status will have their products removed from government procurement and be referred to the Department of Justice (“DOJ”) for potential False Claims Act (“FCA”) liability.
The Legal Framework for Made in America Claims
The FTC Act, 15 U.S.C. § 41 et seq., gives the FTC authority to bring enforcement actions against false or misleading claims that a product is of U.S. origin. The FTC has traditionally enforced an “all or virtually all” standard for unqualified Made in America claims.
The current regulatory framework rests on two primary authorities. The first is the FTC’s Enforcement Policy Statement on U.S. Origin Claims, issued in December 1997, which provides guidance on making non-deceptive Made in America claims. The Policy Statement established that for a product to make an unqualified Made in America claim, it must be “all or virtually all” made in the United States, meaning the final assembly or processing occurs in the United States, all significant processing takes place in the United States, and all or virtually all ingredients or components are made and sourced in the United States. The product should contain no, or only negligible, foreign content.
The second authority is the Made in USA Labeling Rule, 16 C.F.R. Part 323, finalized in August 2021. The Labeling Rule codified the “all or virtually all” standard specifically for labels on products, including labels appearing in catalogs and online marketing materials. Critically, the Labeling Rule authorized the FTC for the first time to seek civil penalties of up to $43,280 per violation for unqualified Made in America labels on products that do not meet all or virtually all standard.
FTC Compliance Guidance
As noted above, and restated here for emphasis, an unqualified claim, such as “Made in America” or “Made in the United States of America,” requires that the product be “all or virtually all” made domestically. This means the final assembly or processing must occur in the United States, all significant processing that goes into the product must occur in the United States, and all or virtually all ingredients or components must be made and sourced in the United States. The FTC has resisted quantifying what “virtually all materials” means in percentage terms.
Companies must have a “reasonable basis” to support their claims at the time representations are made. This requires competent and reliable evidence that the product meets the “all or virtually all” standard but has traditionally permitted sellers to rely on representations of upstream vendors without auditing.
Qualified claims remain permissible. Companies may make qualified claims about U.S. content, such as “Made in the United States of America of U.S. and imported parts,” “60 percent U.S. content,” or “Assembled in the United States of America from imported components,” provided these claims are truthful, substantiated, and include clear and conspicuous disclosures about foreign content. Companies using qualified claims must ensure the qualifications are clear, prominent, and placed in proximity to the claim being qualified.
Certain implied claims may also trigger Made in America requirements. U.S. symbols such as flags, outlines of U.S. maps, or references to U.S. locations may, depending on context, convey an implied claim of U.S. origin.
Impact on Companies: Does the EO Change Existing Requirements?
The EO does not alter the substantive legal standards that companies must meet when making Made in America claims. The “all or virtually all” standard remains unchanged, and the FTC’s existing Enforcement Policy Statement and Made in USA Labeling Rule continue to govern compliance obligations. Companies that are currently in full compliance with FTC requirements should not need to change their underlying analysis.
However, the EO carries significant practical implications. Enforcement priority has clearly shifted, as the FTC is now formally directed to prioritize Made in America enforcement, meaning companies should anticipate more investigations, warning letters, and enforcement actions.
Online marketplaces face potential new liability. The President’s directive to the FTC consider regulations regarding marketplace verification procedures could create new compliance obligations for e-commerce platforms. The FTC will need a nuanced approach to any new regulations so as not to run afoul of Section 230 of the Communications Decency Act that immunizes interactive computer services from civil liability for content created and posted by third parties. Even if formal rulemaking takes time, marketplaces may face pressure to implement voluntary verification programs.
Government contractors face heightened risk as well. The EO’s directive to verify Buy American Act compliance and refer violators to the DOJ for FCA prosecution creates significant exposure for companies selling to the federal government.
Recommended Actions
Companies making Made in America claims should take several proactive steps in light of this EO.
- Audit current claims by conducting a comprehensive review of all Made in America claims across product labels, packaging, websites, catalogs, advertising, and marketing materials to ensure each claim is substantiated under the “all or virtually all” standard.
- Verify supply chain documentation to ensure they maintain competent and reliable evidence supporting the domestic origin of raw materials, components, parts, and processing.
- Review qualified claims to ensure that disclosures regarding foreign content are clear, conspicuous, and accurately reflect the product’s composition.
- Assess implied claims and evaluate whether use of American imagery, symbols, or geographic references could be interpreted as an implied Made in America claim.
- Review federal sales (for government contractors) to ensure all Buy American Act representations are accurate and substantiated.
- Monitor FTC developments and stay informed regarding any proposed rulemaking on online marketplace verification procedures or other regulatory actions.
Conclusion
While the EO does not change the substantive requirements for Made in America claims, it signals a clear enforcement priority for the current administration. Companies should expect increased scrutiny from the FTC and should take proactive steps to ensure their Made in America claims are truthful, substantiated, and compliant with existing FTC standards. The combination of civil penalty authority under the Made in USA Labeling Rule and the administration’s stated intention to prioritize enforcement creates meaningful compliance risk for companies that have not carefully evaluated their Made in America representations.
