FTC defines standards of ‘Made in USA’ label

When we see “Made in USA” on a product we expect the claim to be truthful and accurate. Especially since the terrorist attacks of Sept. 11, news reports suggest that consumers are even more sensitive to “Made in USA” claims and more interested in buying American-made goods.

According to the Federal Trade Commission, “Made in USA” means that “all or virtually all” the product has been made in America. That is, all significant parts, processing and labor that go into the product must be of U.S. origin. Products should not contain any – or only negligible – foreign content. The FTC’s Enforcement Policy Statement and its business guide, “Complying with the Made in USA Standard,” spell out the details of the standard, with examples of situations when domestic-origin claims would be accurate and when they would be inappropriate. See www.ftc.gov/os/statutes/usajump.htm for more information.

Here’s how the FTC evaluates “Made in USA” claims in product advertising, labeling and packaging:

Unless the product is an automobile or a textile or wool product, there’s no law that requires manufacturers and marketers to make a “Made in USA” claim. If a business chooses to make the claim, however, the FTC’s “Made in USA” “all or virtually all” standard applies.

For textile and wool products: Under the Textile and Wool Acts, these products must be labeled to identify the country where they were processed or manufactured.

. Imported products must identify the country where they were processed or manufactured.

. Products made entirely in the United States of materials also made in the United States must be labeled “Made in USA” or with an equivalent phrase.

. Products made in the United States of imported materials must be labeled to show the processing or manufacturing that takes place in the United States, as well as the imported component.

. Products manufactured in part in the United States and in part abroad must identify both aspects.

In addition, print and online catalogs must disclose whether a textile was made in the USA, imported or both.

The American Automobile Labeling Act requires that each automobile manufactured on or after Oct. 1, 1994, for sale in the United States bear a label disclosing where the car was assembled, the percentage of equipment that originated in the United States and Canada, and the country of origin of the engine and transmission. For more information, call the Consumer Programs Division of the National Highway Traffic Safety Administration (202-366-0846) or visit the NHTSA Web site.

Suspect a violation? If you believe that a product promoted as “Made in USA” is not American-made or contains significant foreign parts or processing, file a complaint with the FTC. If you are aware of import or export fraud, call the U.S. Customs Service Commercial Fraud Hotline, 1-800-ITS-FAKE.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast COMBAT/The Maine Center for the Public Interest, Maine’s membership-funded nonprofit consumer organization. For help or to request individual or business membership information write: Consumer Forum, Bangor Daily News, PO Box 1329, Bangor 04402-1329.