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FTC's 'Made in USA' Claims Penalty Paves Way for Additional Enforcement


In this article, Richard Mojica, Alex Sarria, and Nicole Gökçebay discuss recent Federal Trade Commission (FTC) enforcement actions and the potential for increased enforcement for companies making "Made in USA" or other U.S. origin claims in their product advertising and labeling. The FTC can impose monetary penalties on companies that make false or misleading U.S. origin claims but have historically limited those types of penalties to repeat offenders. However, this approach has prompted calls for the FTC to do more to increase enforcement. "We expect that the real threat of penalties will encourage others to denounce false or misleading U.S. origin claims, and that the FTC will continue to fine repeat offenders," the authors wrote. "What is less clear is whether the mounting pressure to do something will prompt the FTC to seek civil penalties or pursue other remedies against first-time offenders."