In a complaint against Chemence, a manufacturer of fast-acting glues, the FTC alleged that consumers were deceved by false “Made in USA” or “Proudly Made in USA” claims because approximately 55 percent of the costs of the chemical inputs to the glues were attributable to imported chemicals that were essential to the glues’ function. Chemence also produced its Made-in-USA marketing materials to private-label sellers and third-party websites and storefronts.

Chemence Product Packaging:

Insider Take

The FTC consent order prohibits the company from making unqualified “Made in USA” claims for any product unless it can show that the product’s final assembly or processing – and all significant processing – take place in the United States and that all or virtually all ingredients or components of the product are made and sourced in the United States.

While this complaint is against a manufacturing company, subscription businesses should be forewarned: If your business involves distributing goods for delivery to subscribers or use premiums that you provide for free with your subscription services, and you make general  “Made in the U.S.A.” claims about those goods, you have an obligation to ensure that all such claims are true, even if the claims were provided directly by the actualy manufacturer.

It might be time to double check substantiation for your claims if you are making, selling, or distributing any products touted as “Made in USA”.