Executive Order Signals Heightened Enforcement of "Made in USA" Advertising Claims

President Donald Trump on March 13, 2026, signed Executive Order (EO) 14392, "Ensuring Truthful Advertising of Products Claiming to be Made in America," directing the Federal Trade Commission (FTC) to prioritize enforcement against sellers and manufacturers making false or unsubstantiated "Made in USA" and similar American‑origin claims.¹ Though the EO does not change the substantive legal standard, it materially raises enforcement, platform and commercial risk for consumer brands, retailers and online marketplaces, particularly those selling through e-commerce channels or relying on patriotic branding.

This Holland & Knight alert explains why the EO matters now, summarizes the FTC's existing framework, highlights recent enforcement actions and outlines practical steps brands, retailers and marketplaces should take immediately.

Overview of the EO

Key Directives

The EO contains the following substantive provisions:

• Prioritized FTC Enforcement. The FTC Chair shall, wherever appropriate, prioritize enforcement actions in cases where a seller's or manufacturer's claim that a product is "Made in America," "Made in the U.S.A." or any similar American-origin claim constitutes a violation of law, including an unfair or deceptive act or practice.²
• Proposed Rulemaking Concerning Online Marketplaces. The FTC shall consider issuing proposed regulations providing that the failure of an online marketplace to establish procedures for verifying country-of-origin claims may constitute an unfair or deceptive act or practice under the FTC Act.³
• Voluntary Labeling Guidance. In consultation with the FTC Chair, all agencies with oversight of country-of-origin labeling shall consider promulgating regulations that promote voluntary country-of-origin labeling for products made or manufactured in the U.S., with agencies consulting with one another to ensure consistent guidance.⁴
• Government Procurement Verification. All agencies overseeing government procurement contracts shall periodically review and verify any American-origin claims for products acquired through these contracts. Contractors or vendors found to misrepresent an American-origin status of any product sold to the government will have their products removed from procurement availability and be referred to the U.S. Department of Justice (DOJ) for potential False Claims Act (FCA) liability.⁵ For a closer look at the potential impact on government contractors, see Holland & Knight's alert, "Executive Order Increases Scrutiny on Buy American Act and Made in America Products," March 18, 2026. It notes that contractors should 1) audit all existing Buy American Act, Trade Agreements Act and country-of-origin certifications, as well as map product supply chains (including substantial transformation support), to confirm accuracy, and 2) train relevant teams, maintain robust origin documentation, evaluate voluntary self-disclosure if issues are found and monitor upcoming rulemaking for new labeling standards.

Why This EO Matters for Consumer Brands and Marketplaces

Although the FTC has regulated "Made in USA" claims for years, the EO is significant because it:

• signals a shift from complaint‑driven enforcement to proactive scrutiny, particularly of e-commerce listings and mass‑market consumer goods
• targets digital marketplaces explicitly, raising the possibility of platform‑level liability for unverified seller claims
• increases competitive risk, as companies that invest in domestic manufacturing are incentivized to challenge competitors' claims
• raises reputational and commercial stakes, where enforcement actions can lead to delistings, consumer refunds and viral public relations fallout – not just fines

For brands and retailers, the practical risk is not limited to labeling; it extends to product pages, badges, imagery, filters (e.g., "Made in USA"), advertising creatives and influencer content.

FTC Regulatory Framework for "Made in USA" Claims

The "All or Virtually All" Standard

The FTC has long required that a product advertised as "Made in USA" be "all or virtually all" made in the U.S.⁶

In August 2021, the FTC finalized the Made in USA Labeling Rule, codified at 16 C.F.R. Part 323, which formalized the "all or virtually all" standard for product labels. Marketers are now subject to civil penalties if they use an unqualified "Made in USA" label on a product that is not "all or virtually all" made in the U.S., including labels in catalogs or online marketing materials.⁷

Regulatory Definition and Requirements

Under 16 C.F.R. § 323.2, it is an unfair or deceptive act or practice to label any product as "Made in the United States" unless:

1. the final assembly or processing of the product occurs in the U.S.
2. all significant processing that goes into the product occurs in the U.S.
3. all or virtually all ingredients or components of the product are made and sourced in the U.S.⁸

The term "Made in the United States" is defined broadly to include any unqualified representation, express or implied, that a product or service is of U.S. origin, including representations that a product is "made," "manufactured," "built," "produced," "created" or "crafted" in the U.S. or in America.⁹

What "All or Virtually All" Means in Practice

"All or virtually all" means that the product should contain no – or negligible – foreign content.¹⁰ In evaluating whether a product qualifies, the FTC considers:¹¹

• Site of Final Assembly or Processing. The product must have its final assembly or processing in the U.S.
• Percentage of U.S. Manufacturing Costs. The FTC examines the percentage of total manufacturing costs attributable to U.S. parts and processing versus foreign There is no fixed percentage threshold; the inquiry is conducted on a case-by-case basis.
• Remoteness of Foreign Content. The FTC considers how far removed from the finished product any foreign content is. A marketer should look far enough back in the manufacturing process to account for any significant foreign content.

Qualified Claims

Marketers who cannot meet the "all or virtually all" standard may make qualified claims, such as "Made in USA of U.S. and imported parts" or "Assembled in USA." Such claims must be truthful and substantiated, and qualifications must be clear, prominent and understandable. An "Assembled in USA" claim may be made without further qualification where a product has undergone its principal assembly in the U.S., that assembly is substantial and the product was last substantially transformed in the U.S.¹²

Implied Claims

The FTC focuses on the overall impression that advertising, labels or promotional materials convey to consumers. Depending on context, U.S. symbols or geographic references – such as U.S. flags, outlines of U.S. maps or references to U.S. locations – may convey a claim of U.S. origin either by themselves or in conjunction with other phrases or images.¹³

Enforcement Authority

Violations of the Made in USA Labeling Rule are treated as violations of a rule under Section 18 of the FTC Act, which authorizes civil penalties. Each violation of such a rule or an FTC order may result in substantial civil penalties.¹⁴

Recent FTC Enforcement Actions

The FTC has been actively enforcing "Made in USA" requirements in recent years, bringing a series of high-profile cases that illustrate the types of conduct that attract enforcement scrutiny. The FTC's recent cases show that enforcement often begins with issues companies view as minor or "marketing‑driven." Even absent new rules, the FTC has put marketplaces on notice that "neutral platform" arguments may carry less weight particularly where the platform facilitates, curates, promotes or affirmatively displays U.S.-origin claims. These cases illustrate that the FTC's focus extends beyond intentional fraud to marketing‑driven claims, implied representations and failures to reassess claims as supply chains change.

Key Takeaways from Enforcement Actions

These cases demonstrate several important enforcement trends:

• Active Enforcement of the 2021 Labeling Rule. The Lithionics Battery case was the FTC's first action under the Made in USA Labeling Rule, signaling that the agency will use its civil penalty authority to address violations.
• Significant Penalties for Repeat Offenders. The kitchen retailer case resulted in a record $3.175 million civil penalty for violating a prior FTC order, demonstrating that companies with existing consent orders face heightened consequences for continued violations.
• Individual Liability. Enforcement actions have named individual owners and executives, not just corporate entities, as seen in the Lions Not Sheep and Lithionics cases.
• July 2025 Warning Letters. In July 2025, the FTC sent warning letters to companies advising them to comply with Made in USA requirements or provide substantiation that their products are "all or virtually all" made in the U.S.²⁰

Recommendations for Clients

In light of the EO and the FTC's enforcement posture, companies that make or are considering making "Made in USA" claims should treat those claims as a core compliance issue – not a marketing detail – and should:

• audit existing claims across all product labels, advertising, websites and promotional materials to ensure they can be substantiated under the "all or virtually all" standard
• review supply chain documentation to verify the origin of all significant components, ingredients and processing steps and ensure documentation is maintained and current
• use qualified claims where appropriate, with disclosures that are clear, conspicuous and consistent across all sales channels
• monitor for implied claims, including the use of U.S. flags, maps or other patriotic imagery that may convey an origin claim
• for marketplaces, implement documented verification and enforcement procedures
• update compliance programs to reflect that enforcement is expected to intensify, particularly for products sold through online marketplaces

Notes

¹ EO No. 14392, Ensuring Truthful Advertising of Products Claiming to be Made in America, §1 (March 13, 2026).

² Id. §2(a).

³ Id. §2(b).

⁴ Id. §2(c).

⁵ Id. §2(d).

⁶ FTC, Complying with the Made in USA Standard (July 2024).

⁷ Id.

⁸ Made in USA Labeling, 16 C.F.R. § 323.2 (2021).

⁹ Id. § 323.1.

¹⁰ FTC, supra note 7.

¹¹ Id.

¹² Id.

¹³ Id.

¹⁴ 16 C.F.R. § 323.4.

¹⁵ Lesley Fair, FTC Charges Battery Maker in First Case Under Made in USA Labeling Rule, FTC Business Blog (April 13, 2022).

¹⁶ Press Release, FTC, FTC Takes Action Against Lions Not Sheep and Owner for Slapping Bogus Made in USA Labels on Clothing Imported from China (May 11, 2022).

¹⁷ Lesley Fair, Steering Clear of Misleading Made in USA Claims, FTC Business Blog (April 18, 2023).

¹⁸ Press Release, FTC, FTC Action Leads to $2 Million Penalty Against Kubota for False Made in USA Claims (Jan. 26, 2024).

¹⁹ Press Release, FTC, FTC Sends More Than $140,000 to Consumers Deceived by False Made in USA Claims by Chaucer Accessories and Bates Accessories (Nov. 20, 2024).

²⁰ Press Release, FTC, Federal Trade Commission Warns Companies to Comply with "Made in USA" Requirements (July 8, 2025).

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.