Flags, Boots, and Dartboards—The FTC Is Coming for False American Origin Claims
Companies marketing products with any variation of a "Made in the USA" claim — on packaging, labels, company websites, in social media, or anywhere else — should heed a clear message from the Federal Trade Commission that it is on the lookout for unsubstantiated claims and enforcement is a priority. On April 14, 2026, the FTC announced a coordinated enforcement sweep targeting companies for allegedly false "Made in the USA" claims. The FTC resolved investigations against three companies through federal court settlements requiring consumer redress and injunctions, while another two inquiries ended in closing letters following company cooperation. The sweep follows the March 2026 White House Executive Order directing the FTC to prioritize enforcement actions for false or misleading “Made in the USA” and any similar American-origin claims.
Below, we summarize the enforcement actions, revisit the governing legal standard, and identify key compliance steps legal and marketing teams should take now.
The Enforcement Sweep
1. TouchTunes Music Company, LLC — Electronic Dartboards
The FTC sued TouchTunes, alleging the company falsely advertised its electronic dartboards as "Made in the USA" on its website and in other marketing materials. According to the complaint, while TouchTunes completed final assembly in the United States, components essential to the product’s operation — including computer chips, cameras, and flatscreen monitors — were manufactured overseas. In light of this, the FTC alleged the company’s unqualified “Made in the USA” claims violated Section 5 of the FTC Act and the Made in the USA Labeling Rule.
This case is significant for two reasons. First, it underscores the FTC’s longstanding interpretation that domestic final assembly does not satisfy the "all or virtually all" standard when imported components are essential to the product's functionality. Second, the settlement requires $625,000 in consumer redress — the largest monetary remedy in a Made in USA Labeling Rule case to date. The proposed order also prohibits future misrepresentations regarding U.S.-origin claims and requires consumer notice of the settlement.
2. Americana Liberty LLC / Three Nations LLC — Patriotic Flags and Display Products
The FTC sued Americana Liberty LLC, Three Nations LLC, and their principals, alleging the defendants advertised American flags, U.S. military flags, and patriotic accessories as "Made in the USA," "All-American Made," "100% Made in the USA," "100% American Made Tough," and "Built by Americans for Americans." Despite this, the complaint alleges that several products were wholly imported from China and others contained significant or essential Chinese-sourced components.
In addition to alleged violations of Section 5 of the FTC Act and the MUSA Labeling Rule, the defendants also allegedly violated the Textile Fiber Products Identification Act and its implementing rules by failing to include mandatory country-of-origin disclosures on their flag products. The settlement provides $167,743 in consumer redress and requires compliance with both MUSA and textile labeling obligations.
3. Oak Street Manufacturing Company / Oak Street Bootmakers — Footwear
The FTC sued Oak Street, alleging the company falsely claimed its boots and footwear were "handcrafted 100%" in the United States using the slogan "More than Made in USA™," and that the "entire product" was U.S.-made "from heel-to-toe, using no pre-assembled components from overseas."
The complaint alleged that, for certain products, Oak Street used a Dominican Republic factory for upper components, sourced outsoles from Brazil, and in some instances completed final assembly outside the United States. Oak Street’s settlement provides for $75,000 in consumer redress and a prohibition on future misrepresentations.
Notably, the actions against Americana Liberty and Oak Street followed a July 2025 FTC warning letter to each company — meaning the FTC gave notice and the companies failed to take adequate steps to address concerns raised by the FTC in the warning letters.
In addition to the three settlements, the FTC also issued closing letters to two other companies, trailer manufacturer Lamar Trailers, Inc. and acrylic display manufacturer Marketing Holders LLC, after each voluntarily addressed concerns raised by the FTC regarding their Made in the USA claims.
The FTC Standard
"All or Virtually All"
An unqualified "Made in USA" claim without any limits or qualifications requires that the product be "all or virtually all" made in the United States. This standard, codified in the Made in USA Labeling Rule (16 C.F.R. Part 323), and rooted in the FTC's 1997 Enforcement Policy Statement on U.S. Origin Claims, means:
Final assembly or processing must occur in the United States;
All significant processing must occur in the United States; and
All or virtually all ingredients or components must be made and sourced in the United States — meaning the product should contain no, or only negligible, foreign content.
The FTC weighs multiple factors when applying this standard, including the proportion of total manufacturing costs attributable to U.S. parts and labor, and how far removed foreign inputs are from the finished product. As illustrated in the TouchTunes case, the FTC scrutinizes the functional significance of any foreign content in a finished product. Final assembly in the U.S. is necessary but not sufficient.
Qualified Claims: An Alternative Path
A company whose product does not meet the unqualified standard may still make a truthful qualified claim — one that accurately describes the nature and extent of U.S. content or processing such as "Made in USA of U.S. and Imported Parts." Qualified claims must also be substantiated and must not imply more domestic content than the product actually contains.
Don’t Overlook Implied Claims
The FTC's standard applies to express and implied claims alike. Product packaging featuring a U.S. flag, a reference to "American craftsmanship," or mentions of U.S. factories can constitute implied Made in the USA claims subject to the same substantiation standards. Evaluate the overall net impression conveyed to consumers — not just literal language.
Key Takeaways
1. Audit Your Claims Before the FTC Does
Conduct a comprehensive audit of every Made in the USA or American-made claim across all touchpoints: product labels, packaging, e-commerce pages, social media profiles, paid advertising, email campaigns, catalogs, press releases, and sales materials. Consider both express and implied claims, including imagery and iconography, and apply the FTC's "all or virtually all" standard to each claim.
2. Know Your Supply Chain
Substantiating a Made in the USA claim requires knowing where your components come from. Obtain and document supplier certifications of domestic content for each part or component. If you rely on supplier representations made in good faith, document them. Keep substantiation current: sourcing changes may trigger claims updates.
3. Do Not Ignore Regulator Inquiries
Two of the three enforcement actions in this sweep followed earlier FTC warning letters. Companies that respond quickly and cooperate in good faith can often work with the regulator to remediate concerns and may be able to conclude the inquiry without formal action.
4. Don't Overlook Industry-Specific Requirements and State Laws
In addition to the FTC’s MUSA standard, certain industries are subject to additional country-of-origin disclosure obligations under laws like the Textile Fiber Products Identification Act, the Wool Products Labeling Act, the Fur Products Labeling Act, and the American Automobile Labeling Act. Confirm which sector-specific requirements apply to your product category.
California also regulates Made in the USA claims on product packaging pursuant to Cal. Bus. & Prof. Code § 17533.7. California’s law employs a different standard, so advertisers selling products in California must ensure they meet both the FTC and California standards for Made in the USA claims.
5. A Note for Government Contractors: Buy American Act Compliance Is Not the Same as FTC Compliance
Companies that pursue government procurement contracts should note an important distinction: Buy American Act compliance does not equal FTC compliance. The Buy American Act (41 U.S.C. Chapter 83) requires federal agencies to preference procurement of domestically produced goods, but applies a domestic content threshold that is lower than the FTC's "all or virtually all" standard. A product that qualifies as domestic under Buy American rules may still fall short of FTC requirements for an unqualified "Made in USA" claim. Advertisers who promote Buy American compliance in consumer-facing materials should confirm that those claims also satisfy the FTC's standard — or qualify them accordingly.
6. Keep Records
Companies must have adequate substantiation at the time the claim is made, and it must be maintained. In the event of a regulatory inquiry, you will need to produce documentation supporting your claims. Maintain a substantiation file for each Made in the USA claim your company makes.
If your company makes Made in the USA claims and you are not certain they meet relevant legal standards, our team is here to help.
Originally published by InfoLawGroup LLP. If you would like to receive regular emails from us, in which we share updates and our take on current legal news, please subscribe to InfoLawGroup’s Insights HERE. This summary does not constitute legal advice.