Comment Period Open for Made in USA Rule

Comment Period Open for Made in USA Rule

June 17, 2020, Covington Alert

The comment period is now running on the FTC's proposed Made in the USA rule. Comments must be submitted by September 14, 2020. See the Made in the USA Labeling rule here.

Building on the agency's 1997 Enforcement Policy Statement, subsequent enforcement actions and the more recent workshop and staff report, the proposed rule largely codifies existing standards for unqualified "Made in the USA" claims, requiring that (1) final assembly or processing of the product occurs in the United States; (2) all significant processing that goes into the product occurs in the United States, and (3) all or virtually all ingredients or components of the product are made and sourced in the United States. Violation of the rule would subject the advertiser to potential civil penalties. As the separate statements of the Commissioners issued on June 22, 2020, indicated, however, there is some disagreement about the application of the rule to online advertising in light of the statutory premise that the Commission's actions in this regard apply to "labeling."

If you have any questions concerning the material discussed in this client alert, please contact the following members of our Advertising and Consumer Protection practice.