Biden Administration Issues Order Targeting False Country-of-Origin Claims

In a significant move to protect American manufacturing and consumer rights, President Trump has signed an executive order targeting deceptive “Made in USA” claims. The order, titled “Ensuring Truthful Advertising of Products Claiming to be Made in America,” directs the Federal Trade Commission (FTC) to prioritize enforcement against false country-of-origin labeling.

Under current FTC guidelines, products labeled “Made in USA” must be “all or virtually all” American-made—meaning they must be assembled, processed, and finished in the United States, with virtually all components sourced domestically. This stringent standard reflects the high value American consumers place on domestically produced goods, with nearly 80 percent of shoppers preferring American-made products to support the national economy and domestic job growth.

The executive order addresses a growing concern in the marketplace, where some companies have been accused of misleading consumers. Prominent retailers like Williams-Sonoma have previously faced scrutiny for allegedly making false “Made in USA” claims, taking advantage of consumers’ patriotic purchasing preferences.

However, the order goes beyond simply targeting individual offenders. It also asks the FTC to consider whether online platforms that fail to verify country-of-origin claims might themselves be engaging in deceptive advertising practices. Additionally, it encourages federal agencies to promote voluntary country-of-origin labeling across commercial sectors.

Industry experts note that this addresses a significant discrepancy in current regulations. While physical retail locations are legally required to display country-of-origin information on products, online retailers operate under no such mandate. This creates a confusing landscape for consumers shopping online who specifically seek American-made products but lack reliable information to make informed decisions.

Recent public opinion data supports addressing this gap, with a Morning Consult poll revealing that 77 percent of Americans believe online retailers should be required to display country-of-origin labels—the same standard applied to brick-and-mortar stores.

The executive order, while significant, has limitations. It doesn’t establish binding requirements for online retailers to display country-of-origin information, and as an executive action rather than legislation, it could be reversed by future administrations.

A more permanent solution may be found in the Country of Origin Labeling (COOL) Online Act, a bipartisan bill introduced by Senator Tammy Baldwin (D-WI). The legislation would close the online labeling loophole by requiring e-commerce platforms to provide the same country-of-origin information that physical retailers must display, creating consistency across shopping channels.

“The President made clear he’s on board, but a rule isn’t going to cut it,” said Senator Baldwin. “We need to make this law. I’m calling on him to immediately back my bill to protect Made in the USA products, increase transparency for online shoppers and support American businesses.”

The Alliance for American Manufacturing (AAM), a partnership established between leading domestic manufacturers and the United Steelworkers, has endorsed the COOL Online Act. Scott Paul, AAM President, described the legislation as “a commonsense, bipartisan solution” that builds on the momentum created by the executive order.

Manufacturing industry analysts point out that clear country-of-origin labeling serves multiple economic purposes. Beyond consumer protection, it helps showcase domestic manufacturing capabilities, supports supply chain transparency, and can highlight American companies’ commitment to quality standards and worker protections.

As e-commerce continues to grow as a percentage of total retail sales—accelerated further by the pandemic—addressing the information gap between physical and online shopping experiences becomes increasingly important for both consumers and domestic manufacturers alike.