Biden Administration Strengthens Made-in-USA Labeling Requirements With New Executive Order

The Biden administration has taken decisive action to strengthen enforcement of Made-in-USA product claims through a new executive order that reinforces existing Federal Trade Commission (FTC) rules and holds advertisers accountable for misleading origin statements.

The executive order, issued last week, comes at a strategic time as companies prepare for upcoming national events including America250 celebrations and the 2026 World Cup, when demand for American-made products is expected to surge. The initiative addresses growing concerns about fraudulent domestic origin claims in the marketplace.

“Marketers need to be ready to show all or virtually all parts and processes are of U.S. origin, all the way back to raw materials,” explained Julia Solomon Ensor, counsel of the Advertising & Media Industry Group at law firm Reed Smith and former 15-year veteran of the FTC’s Made-in-USA program.

The FTC’s existing labeling rule, established in 2021, requires products labeled as “Made in USA” or “Made in America” to meet strict standards: the final assembly, all significant processing, and all components or ingredients must originate in the United States. Companies that fail to meet these requirements face potentially severe financial consequences.

“You could be looking at more than $50,000 per violation per day, which really stacks up quickly,” Ensor warned.

While the executive order doesn’t create new regulations, it significantly strengthens enforcement mechanisms. The order directs the FTC to prioritize action against deceptive claims and authorizes consultation with other federal departments that have specific product expertise. It also instructs the FTC to consider additional rules targeting online marketplaces that don’t verify vendors’ country-of-origin claims.

A key element of the order focuses on government procurement, directing agencies overseeing federal acquisition contracts to verify compliance with the Buy American Act (BAA). This aspect creates particular challenges for companies in the promotional products industry and other sectors that sell to government entities like the National Park Service or military agencies.

The BAA, which governs products purchased directly by the federal government, considers items “domestic” if the end product is manufactured in the U.S. and if the cost of domestic components exceeds a specified percentage of all component costs. Importantly, these standards are less stringent than the FTC’s comprehensive requirements.

This discrepancy creates a potential compliance disconnect that could catch many companies off guard. A product might satisfy the BAA requirements for government procurement but still fall short of the FTC’s stricter “Made in USA” standard for general marketplace claims.

For distributors, the consequences extend beyond their own marketing. They could face liability for including false origin claims in catalogs or failing to correct misleading language from suppliers they work with, creating a domino effect of compliance issues throughout supply chains.

Industry experts recommend that companies protect themselves by thoroughly documenting their supply chains and replacing ambiguous phrases with supportable claims. For instance, products that don’t meet the full “Made in USA” standard might more accurately be labeled as “Assembled in USA” or “Decorated in USA.” The FTC emphasizes that companies must continuously review their claims to ensure accuracy.

“This EO imposes no new legal requirements, nor does it imply that there will be any change in the standard for making a ‘Made in USA’ claim, for purposes of general advertising or federal acquisitions,” Ensor clarified. “All it does is encourage relevant agencies to enforce the laws and rules that are on the books, and to consider rulemaking in a few specific contexts. Businesses that follow the law have nothing to worry about.”

The executive order reflects increasing government attention to product origin claims and consumer protection measures in an era of complex global supply chains. As American manufacturing receives renewed focus in policy discussions, companies across sectors are facing greater scrutiny of their domestic production claims and marketing practices.