The Federal Trade Commission (FTC) has announced warning letters to seven companies whose products appeared to be marketed as "Made in USA" or "Made in Texas" despite indications that the products were imported in whole or significant part. The FTC linked the action to its Made in USA enforcement priorities. Products identified in the FTC's announcement include drums, industrial laser machinery, coordinate measuring machines, and e-cigarettes.

The warning letters do not constitute final enforcement actions — they give the recipients an opportunity to correct their marketing practices before the FTC initiates a formal investigation or enforcement proceeding. However, the FTC's Made in USA enforcement program has resulted in civil penalties, consent orders, and injunctive relief in prior cases, and the warning letters signal that the FTC is actively monitoring origin claims across a range of product categories.

The FTC's Made in USA standard is strict and unqualified. Under the FTC's policy, a product may be marketed as "Made in USA" without qualification only if all or virtually all of the product has been made in the United States — meaning that all significant parts, processing, and labor that go into the product are of U.S. origin.

Key elements of the standard:

• "All or virtually all" means that the product contains no — or negligible — foreign content
• The standard applies to the final product and its components — a product assembled in the U.S. from imported components does not qualify for an unqualified Made in USA claim
• Processing and labor must also be U.S.-origin — a product manufactured abroad and finished or packaged in the U.S. does not qualify
• The standard applies to all marketing materials — websites, packaging, labels, catalogs, invoices, social media, and sales presentations

Qualified claims — such as "Made in USA of U.S. and imported parts" or "Assembled in USA" — are permissible if they accurately describe the product's origin and are not misleading. However, qualified claims must be truthful and substantiated.

State-specific claims — such as "Made in Texas" — are evaluated under the same framework. A state-of-origin claim implies that the product meets the FTC's Made in USA standard with respect to that state; a product assembled in Texas from imported components does not qualify for an unqualified "Made in Texas" claim.

The FTC's announcement identified the following product categories as the subject of warning letters:

Drums. Industrial drums marketed as Made in USA despite apparent importation of the drums or their significant components.

Industrial laser machinery. Laser cutting, engraving, or marking machines marketed with U.S.-origin claims despite apparent importation from overseas manufacturers — a category where Chinese-manufactured laser equipment has significant U.S. market presence.

Coordinate measuring machines (CMMs). Precision measurement equipment marketed with U.S.-origin claims despite apparent importation.

E-cigarettes. Electronic cigarettes or vaping devices marketed with U.S.-origin claims despite apparent importation — a category where the vast majority of products are manufactured in China.

The inclusion of industrial laser machinery and coordinate measuring machines in the FTC's enforcement action is notable because these are B2B product categories where buyers — manufacturers, fabricators, and precision engineering companies — may rely on origin claims in procurement decisions, government contracting, and supply chain compliance programs.

Audit Origin Claims Across All Marketing Materials

Companies that market products with Made in USA or state-of-origin claims should conduct an immediate audit of all marketing materials — websites, product pages, packaging, labels, catalogs, data sheets, invoices, purchase orders, and sales presentations — to identify all origin claims.

For each claim, the company must be able to substantiate that the product meets the FTC's "all or virtually all" standard. Substantiation requires documentation of the product's supply chain: where each significant component is manufactured, where processing and assembly occur, and what percentage of the product's total manufacturing cost is attributable to U.S. content.

Review Supplier Contracts

Companies that source products or components from overseas suppliers and market them with U.S.-origin claims should review their supplier contracts for:

• Origin warranties: Does the supplier warrant the country of origin of the goods? If the supplier misrepresents origin, does the contract provide a remedy?
• Documentation obligations: Is the supplier required to provide country-of-origin documentation (certificates of origin, customs declarations, bills of lading)?
• Indemnity provisions: If the company faces FTC enforcement action because of a supplier's misrepresentation of origin, does the contract provide indemnification?
• Approval controls for marketing language: Does the contract require supplier approval before the company uses origin-related marketing language about the supplier's products?

Update Marketing Language

Companies that cannot substantiate an unqualified Made in USA claim should update their marketing language to use qualified claims that accurately describe the product's origin. Qualified claims must be truthful, non-misleading, and clearly disclosed.

Implement an Origin Claim Compliance Program

Companies with significant U.S. market presence and complex supply chains should implement a formal origin claim compliance program that includes:

• A supply chain mapping process that identifies the country of origin of all significant components
• A review process for new product launches and marketing materials
• Training for marketing, sales, and procurement personnel
• A periodic audit process to identify and correct non-compliant claims

The FTC's Made in USA enforcement program can result in:

• Civil penalties of up to $51,744 per violation per day (subject to annual adjustment)
• Consent orders requiring the company to cease the deceptive practice and implement compliance measures
• Injunctive relief prohibiting specific marketing claims
• Reputational damage from public FTC enforcement announcements

The FTC has also pursued enforcement actions against companies that continued to make Made in USA claims after receiving warning letters, resulting in significantly higher penalties.

Turkish companies selling in the U.S. market. Turkish manufacturers and exporters whose products are sold in the U.S. market — whether directly or through U.S. distributors, retailers, or private-label arrangements — should assess whether their products or their U.S. partners' marketing materials include any origin claims that could be affected by FTC enforcement. Turkish-manufactured products should not be marketed with U.S.-origin claims unless they genuinely meet the FTC's "all or virtually all" standard.

Turkish companies with U.S. distribution arrangements. Turkish manufacturers that supply products to U.S. distributors or private-label buyers should review their distribution agreements for provisions that address origin claims and marketing language. If a U.S. distributor markets Turkish-manufactured products with misleading U.S.-origin claims, the Turkish manufacturer may face contractual exposure if the distribution agreement includes representations about origin or marketing compliance.

Private-label and OEM arrangements. Turkish companies that manufacture products for U.S. private-label buyers — where the U.S. buyer markets the product under its own brand — should ensure that their supply agreements include clear origin documentation obligations and prohibit the U.S. buyer from making origin claims that are inconsistent with the product's actual manufacturing origin.

M&A due diligence. For M&A transactions involving U.S. companies that market products with Made in USA claims, origin claim compliance is a diligence item. Buyers should assess whether the target's origin claims are substantiated, whether the target has received any FTC inquiries or warning letters, and whether the target's supply chain documentation supports its marketing claims.

ULF New York advises Turkish companies and investors on U.S. trade compliance, FTC regulatory matters, and cross-border distribution and supply chain arrangements.