FTC to Drop Plan to Ease ‘Made in USA’ Rule

“Made in the USA” will mean just that after all. Facing pressure from some members of Congress, the Federal Trade Commission will soon announce that it is abandoning a proposal to make it easier for companies to affix the “Made in USA” label to products with foreign parts or made by foreign workers, according to sources familiar with the matter. A new guideline, which was proposed for public comment in May, would have allowed companies to use the label if “substantially all” of a product was made from U.S. parts or assembled by U.S. laborers. Under that rule, merchandise containing as little as 75% of American parts or labor would be able to use the label, which has been coveted by retailers hoping to cash in on buy-American sentiment. The current rule, which would stand, is that a product must be “all or virtually all” manufactured with U.S. parts or fabricated on American soil to use the label. FTC officials declined to comment on the abandonment of the plan.