The FTC’s “Made in the USA” standard applies to products that are advertised  or sold in the United States as American made. Under the standard, a company  can only state or imply that a product is made in the USA when “all or virtually  all” of a product’s parts are of US origin and “all or virtually all” processing takes  place in the United States. This includes statements such as “produced in the  USA,” “created in the USA,” or “manufactured in the USA.” If a product has  a material portion of foreign origin content or foreign origin processing, the  company may make a qualified statement such as “Assembled in the USA of  domestic and foreign materials.”

Some states have laws concerning the use of made in the USA claims that are  more strict, in some respects, than the FTC’s standard. Most notably, in a 2007  decision affirmed by the California Supreme Court, a lock was held not to be  “made in the USA” if it contained foreign-origin screws and pins, regardless of  the value of those components.

Recently articles, trade publications, and legal “alerts” have described a “wave”  of made in the USA class action lawsuits. Most of these articles distort, or  mischaracterize, the type and quantity of made in the USA actions filed. For  example, our Trends in Advertising Class Action Litigation Whitepaper notes,  made in USA claims account for only 2% of the advertising class actions filed.  While any company that uses a made in the USA claim should carefully review  the origins of their products, and the applicable legal standards, before making  a made in the USA claim, the following facts may help gauge the risks involved:

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Industries challenged:

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Jurisdictions in which cases have been filed:

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Legal theories asserted:

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