Parcel shippers subject to regulations governing when goods can be advertised or labeled using terms such as “Made in USA” or “American-made” may soon be in a heightened enforcement environment due to an Executive Order (EO) issued by President Trump on March 13, 2026. This includes possible stricter verification responsibilities on companies and online markets selling products making “Made in America” claims. EO No. 14392, Ensuring Truthful Advertising of Products Claiming to Be Made in America.
The Federal Trade Commission (FTC) is the primary agency charged with enforcing rules governing when a product sold in the U.S. can be advertised or labeled as being “Made in USA.” Falsely advertising or labeling goods as being American-made is an unfair and deceptive trade practice under the Federal Trade Commission Act. (15 U.S.C. § 41). In addition to potential enforcement actions by the FTC, the Lanham Act also allows private parties, including competitors, to sue if they are damaged by a false designation of origin.
A 1997 FTC policy statement provides guidance on “unqualified” and “qualified” “Made in USA” claims. It generally requires that a product advertised as being “Made in USA” be “all or virtually all” made in the United States.
In 2021 the FTC adopted regulations governing the labeling of products as being “Made in the USA.” All products advertised or sold in the U.S., except those subject to other specific U.S. laws governing country-of-origin labeling requirements, are subject to the FTC’s regulations. While the FTC works alongside Customs and Border Protection (CBP), the FTC criteria for “Made in USA” advertising and labeling are not the same as CBP country-of-origin rules for imported goods.
The FTC has brought multiple enforcement actions, resulting in civil penalties, against companies that have violated the “Made in USA” rules. In EO No.14392, President Trump has ordered the FTC Chairman to prioritize such enforcement actions as part of an effort to protect U.S. manufacturers and American consumers from such fraudulent origin claims, especially when products are purchased from digital marketplaces.
EO No. 14392 also instructs the FTC to consider proposing regulations providing that the failure of an online marketplace to establish procedures for verifying country-of-origin claims may constitute an unfair or deceptive practice under the FTC Act. Under current FTC standards, a company must have and rely on a “reasonable basis” to support a “Made in USA” claim. If new regulations are adopted, companies and digital marketplaces may face stricter standards.
In addition to the FTC, EO No. 14392 encourages all federal agencies with oversight of country-of-origin labeling to consider promulgating regulations that promote voluntary country-of-origin labeling. It also requires all U.S. agencies purchasing products through government contracts to periodically review and verify any “Buy American Act”, “Country of Origin USA”, or similar American-origin claims. The EO directs that entities found to misrepresent an American-origin status of any product sold to the federal government shall have their products removed from the Government procurement availability listing, with violators referred to the Department of Justice for possible actions under the False Claims Act.
Parcel shippers who advertise or label the goods they sell and ship as “Made in America” or the equivalent should take note of EO No. 14392. At this time businesses making such claims should verify and document the origin and assembly of the materials in each product to ensure that their labeling and advertising complies with existing FTC rules.
All for now!
Andrew M. Danas is a Partner, Grove, Jaskiewicz and Cobert, LLP, Washington, D.C. Visit www.gjcobert.com or email adanas@danaslaw.com for more information. The information contained in this article is intended to be general background information. It does not constitute and should not be relied upon as legal advice. Readers should contact a qualified attorney should they have a specific legal question.
This article originally appeared in the May/June, 2026 issue of PARCEL.
