March 18, 2026

White House Directs Agencies to Increase Scrutiny of “Made in America” Product Claims

Candi Alfred, Liza Craig, Nate Cunningham, James Gatta, William Harrington, Dina Ljekperic, Anne Railton Goodwin + Follow Contact LinkedIn Facebook X Send Embed

On March 13, 2026, President Donald J. Trump issued an Executive Order (EO or the Order) entitled Ensuring Truthful Advertising of Products Claimed to be Made in America. This EO targets businesses that fraudulently market products as “Made in America” and directs federal agencies to increase scrutiny of such claims.

Concerned that foreign manufacturers increasingly rely on American-made marketing to lure customers in the digital marketplace, the White House explained that this initiative would “ensure Americans get clear, accurate information, and support[] businesses that truly manufacture in the United States” and protect “true American-made businesses” (which “build[], grow[], or manufactur[e] all, or virtually all, aspects of their products onshore”) from diluted branding and unfair competition. The Order directs the Federal Trade Commission to prioritize enforcement actions against sellers and manufacturers that make false or misleading “Made in America” claims. It also provides that misrepresentations in connection with government contracts should be referred to the Department of Justice for potential False Claims Act actions. Going forward, businesses should review and verify American-origin claims for products sold to the public and to the Federal Government.

Background

The Federal Trade Commission (FTC) is the agency tasked with preventing deception and unfairness in the American marketplace. The Federal Trade Commission Act of 1914, 15 U.S.C. 41 et seq., gives the FTC the power to bring law enforcement actions against false or misleading claims that a product is of US origin. Traditionally, the FTC has required that a product advertised as Made in USA or Made in America be “all or virtually all” made in the US.

In 1997, the FTC published its Enforcement Policy Statement on U.S. Origin Claims (the Made in USA Policy Statement). This was intended to guide marketers who want to make an unqualified Made in USA claim under the “all or virtually all” standard and those who want to make a qualified Made in USA claim. In this context, an “unqualified” claim is a claim without conditions or caveats. A “qualified” claim is a claim with limitations or other explanations.

In August 2021, the FTC finalized the Made in USA Labeling Rule (the Labeling Rule), 16 C.F.R. Part 323. The Labeling Rule codified the “all or virtually all” standard for labels on products. As a result, marketers are subject to civil penalties if they use an unqualified Made in USA label on a product that is not “all or virtually all” made in the US, including in catalogs or online.

Generally, US content must be disclosed on automobiles and on textile, wool, and fur products, under a number of applicable laws specific to those industries. However, most other products sold in the US are not legally required to be marked or labeled Made in USA or have any other disclosure about their amount of US content. That said, businesses that choose to make claims about the amount of US content in their products must comply with the FTC’s Made in USA Policy Statement and the Labeling Rule.

Agency Directives Under the EO

The EO signals the Trump Administration’s intent to hold businesses accountable for fraudulent or misleading labeling of products as American-made. First, the EO directs the Chairman of the FTC to prioritize enforcement actions against sellers or manufacturers that falsely or misleadingly claim that products are “Made in America.” The EO states that such violations may be brought as unfair or deceptive acts or practices claims, and directs the FTC to consult with other executive departments and agencies with relevant subject matter expertise concerning the relevant products.

Second, the EO tasks the FTC with considering whether it should issue proposed regulations providing that an online marketplace’s failure to establish procedures for verifying country-of-origin claims may itself constitute an unfair or deceptive act or practice under the Federal Trade Commission Act.

Third, the Order further directs “all agencies with oversight of country-of-origin labeling” to consider “promulgating regulations that promote voluntary country-of-origin labeling for products made or manufactured in the United States” and provide American businesses with consistent guidance on such labeling.

Fourth and finally, the Order directs agencies responsible for overseeing government-wide acquisition contracts, any multiple award schedule, or any other government-wide indefinite delivery or indefinite-quantity contracts to “periodically review and verify” any “Buy American Act,” “Country of Origin USA,” or similar American-origin claims for products acquired through these contracts. The Order further provides that any contractors or vendors found to misrepresent the origin of any product sold to the federal government via those contracts shall have their products removed from government procurement availability and shall be referred to DOJ, which may pursue actions under the False Claims Act, 31 U.S.C. 3729 et seq.

Connection to Trade Fraud and Tariff Enforcement

While the Order does not specifically reference tariffs, its directives fit squarely within the Trump Administration’s America First Trade Policy and the federal government’s focus on tariff fraud enforcement — including an expansion of tariff evasion investigations under the False Claims Act. In August 2025, DOJ announced the creation of a cross-agency Trade Fraud Task Force with the Department of Homeland Security to “aggressively pursue enforcement actions against any parties who seek to evade tariffs and other duties,” including under the False Claims Act, as well as through parallel criminal prosecutions, where appropriate. In September 2025, DOJ announced the creation of a new Market, Government, and Consumer Fraud (MGC) Unit within DOJ’s Criminal Division. As part of the Trade Fraud Task Force, the MGC Unit is mandated to investigate and criminally prosecute fraud that harms US markets and investors, evade tariffs, and procure government contracts through fraudulent means — including “large-scale trade and customs fraud” and circumvention of tariff and trade rules and regulations.

Tariff enforcement poses a substantial risk to US companies and their executives, particularly given the repeated waves of historically elevated tariffs and evolving trade policy. Fraudulent claims about a product’s country of origin, like those targeted by the Order, are often a focus of DOJ investigations. Since January 2025, DOJ has announced eight significant enforcement matters involving alleged tariff fraud, including half a dozen False Claims Act settlements as well as criminal charges. Several of these cases involve claims that US companies (and in some instances their individual owners/executives) made misrepresentations regarding the country of origin of various imported goods. As the Order indicates, such investigations are only likely to increase.

The threat of both FTC and DOJ enforcement poses significant risks. Actions brought by the FTC can expose companies and individuals to civil monetary penalties and injunctive actions. DOJ scrutiny creates further financial risk in addition to potential criminal liability, with violations of the False Claims Act creating exposure of up to three times the amount of the government’s damages plus per-claim penalties.

Takeaways

This Order is another indicator of the Trump Administration’s broad approach to enforcing existing laws regarding product labeling, preventing trade fraud, and advancing its broader “America First” strategy. While it remains to be seen whether the FTC will issue proposed rules regarding online marketplace product claims, it is very clear that companies involved in federal procurement have been put on notice that compliance with country-of-origin and truthful product labeling must be a priority. Companies that label their products for sale to the federal government or commercially should conduct a review of their internal compliance procedures, labeling practices, supply chain sourcing, and documentation supporting country of origin claims to mitigate potential enforcement risk.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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