FTC Letters to Amazon, Walmart & Other Sellers
Use caution with Made in USA claims
Four years of Warning Letter Wednesday posts! I am so grateful for your support! When I started writing this post, I had no idea it would turn into this! I’ve made so many friends, colleagues, and business connections because of this. I’ve also learned so much, as it allows me the time each week to dig into the nuances of enforcement trends, which I love!
Made in the USA (MUSA) claims are top of mind for FTC. They recently sent four warning letters to companies alleging noncompliant MUSA product claims.
Amazon and Walmart also received notification letters (not warning letters) that companies on their platform are making unqualified MUSA statements. In the letter, they reference products making claims like “Made in the USA” or “100% USA Made, “even though the third-party seller is based outside the United States or the product listing describes the item as “imported.”
Key takeaways:
- If you sell on Amazon or Walmart, it is a good time to review your listings to ensure there are no unqualified MUSA claims in text, images, or videos, as they will likely be flagged and delisted. In the past, it seems these platforms didn’t worry too much about this, but now, with the FTC’s attention, I expect tighter scrutiny. An upcoming Apex Compliance feature will scan all of a company’s Amazon storefront product pages in one click for any specific words, such as “Made in the USA,” and then surface issues. I am so excited about this new feature! FTC also references claims made on company websites and social media, and Apex Compliance is already great at finding issues on many of these platforms!
- “Manufactured in USA” may be considered the same as “Made in the USA.” One warning letter references “high quality America [sic] manufactured products.” FTC also referenced “We use only the highest American-made construction,” “handcrafted in USA,” and “American Made.”
- Hashtags count. One warning letter referenced the hashtag # MadeinUSA.
- Noncompliance can be expensive. Here are some of the enforcement “teeth” FTC can use. “Issuance of civil investigative demands (administrative subpoenas), the filing of a federal lawsuit, a permanent injunction, and the imposition of civil penalties of up to $53,088 per violation.”
Read the FTC’s press release, which links to the warning letters. This also includes information on how to meet the “all or virtually all” MUSA standard.
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