CONSUMER PRODUCTS AND RETAIL E-SSENTIALS

USA: FTC publishes final rule for 16 CFR 323 “Made in USA” labeling

JULY 2021 - ELECTRICALS AND ELECTRONICS, HARDLINES, SOFTLINES, TOYS AND CHILDREN'S PRODUCTS

On 14 July 2021, the U.S. Federal Trade Commission (FTC) issues a final rule for 16 CFR 323¹, related to “Made in USA” and other unqualified U.S.-origin claims on product labels.

The final rule largely adopts the substantive provision of the rule as is initially proposed in the Notice of Proposed Rulemaking (85 FR 43162)² from July 2020, with limited modifications based on the comments received.

The rule is published pursuant to FTC’s authority under 15 U.S.C. 45a., where the statute authorizes the agency to issue rules to effectuate this mandate and prevent unfair or deceptive acts or practices relating to U.S.-origin claims (“MUSA claims”).

The statute also authorizes the FTC to seek civil penalties for MUSA claims violations.

The rule, consistent with the Commission’s prior rulings and consumer perception surveys, will prohibit unqualified MUSA claims on labels unless: 

• final assembly or processing of the product occurs in the United States; 
• all significant processing that goes into the product occurs in the United States; and 
• all or virtually all ingredients or components of the product are made and sourced in the United States.

The final rule is effective August 13, 2021.

[1]  16 CFR 323

[2]  NPR (85 FR 43162)