A new executive order issued by Donald Trump aims to strengthen enforcement against misleading “Made in America” claims, particularly within online marketplaces.
The order directs the Federal Trade Commission to prioritize enforcement against manufacturers and sellers that falsely advertise products as being made in the United States or make similar American origin claims in violation of existing law. The action reflects ongoing federal efforts to ensure that marketing accurately represents where products are produced and the level of domestic content in goods.
Under the order, the FTC is also asked to consider new regulations that could treat the failure of online marketplaces to verify country of origin claims as a potential unfair or deceptive practice under the Federal Trade Commission Act.
Federal agencies with oversight of country-of-origin labeling are encouraged to explore additional regulations and provide consistent guidance supporting voluntary country-of-origin labeling for products manufactured in the United States. Agencies responsible for federal procurement contracts must also periodically review and verify American origin claims for products sold to the federal government. Products found to be misrepresented may be removed from procurement programs and referred to the Department of Justice.
During a recent policy briefing hosted by the National Retail Federation (NRF), supply chain policy leader Jon Gold noted the executive order came as a surprise to many stakeholders. NRF plans to monitor how the FTC implements the directive.
