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‘Made in USA’ Cheats to Face Fines as FTC Steps Up Enforcement

Inside The Schott NYC Leather Jacket Manufacturing Facility Ahead Of Wholesale Inventories
Photographer: Victor J. Blue/Bloomberg

Companies inaccurately using “Made in USA” labels will be subject to fines under a Federal Trade Commission rule that requires marketers prove their products are “all or virtually all” made in the country.

Every violation will be subject to civil penalties of as much as $43,280, the regulator said in a statement. The move, cleared by a 3-2 party line vote, doesn’t force new requirements on businesses because it codifies FTC guidance into a formal rule. The FTC was given the power by Congress to fine violators in 1994 after the North American Free Trade Agreement took effect but only after it issued a rule.