Marketers are now subject to civil penalties if they use an unqualified Made in USA label on a product that is not “all or virtually all” made in the U.S., including in catalogs or online. This publication provides additional guidance about how to comply with the “all or virtually all” standard.

On July 16, 2020, the Commission published a Notice of Proposed Rulemaking (“NPRM”) (85 FR 43162) seeking comments on a new rule regarding unqualified U.S.-origin claims (“MUSA claims”) on product labels. The NPRM was preceded by a review of the Commission's longstanding program to prevent deceptive MUSA claims. [1] .

Under the rule, marketers making unqualified Made in USA claims on labels should be able to prove that their products are “all or virtually all” made in the United States.

The rule, which becomes effective August 13, 2021, prohibits marketers from including unqualified MUSA claims on labels unless: The final assembly or processing of the product occurs in the United States; Significant processing that goes into the product occurs in the United States; and.