Federal Trade Commission Publishes Final Rule for Made in USA Labeling within Federal Register
Jul. 19 2021
On July 14, 2021, the Federal Trade Commission (FTC) staff published within the Federal Register the Final Rules for Made in USA Labeling. This Final Rule is codified as 16 CFR PART 323 - MADE IN USA LABELING and becomes effective August 13, 2021.
Background of 16 CFR PART 323 – Made in USA Labeling
On July 16, 2020, the commission published a Notice of Proposed Rulemaking (NPR) regarding unqualified claims relating to Made in USA. The NPR addressed rules prohibiting unqualified US origin claims unless (1) final assembly or processing of the product occurred in the US, (2) all significant processing for the item occurred in the US and (3) all or virtually all of the products ingredients or components were made and sourced within the US. The commission received hundreds of comments related to the proposed rule.
Summary of 16 CFR PART 323 – Made in USA Labeling
• Includes definitions for the terms Made in the United States and mail order catalog/mail order promotional material
• Includes a section on prohibited acts with reference to Made in United States claims. It specifies that all significant processing which goes into the product occurs in the United States and all or virtually all ingredients or components are made and sourced in the United States
• Includes a section for mail order catalogs or mail order promotional materials that promote a Made in the United States claim must comply with the prohibited acts section
• Discusses unfair or deceptive practices and that they shall be treated as violations as per 15 U.S.C. 57a
• States that this part shall not supersede, alter or affect any other federal or state law related to country of origin labeling requirements
• Provides a partial or full exemption to the rule only by way of petitioning the commission
Click to view the final rules for Made in USA Labeling.
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