FTC Warns Walmart, Amazon Against Fake ‘Made in the USA’ Products

A review of ‘Made in the USA’ products by FTC staff suggested they might be wholly imported or contain significant imported content.
FTC Warns Walmart, Amazon Against Fake ‘Made in the USA’ Products
Workers assemble watches at a factory in Detroit on Jan. 4, 2017. Jeff Kowalsky/AFP via Getty Images
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The Federal Trade Commission (FTC) warned Walmart and Amazon regarding third-party online sellers who may be selling merchandise falsely labeled as made in the United States, according to a July 8 statement.
The agency also sent letters to four other companies—flagpole retailer Americana Liberty; footwear maker Oak Street Manufacturing, LLC; personal care products manufacturer USA Big Mountain Paper Inc.; and football equipment company Pro Sports Group LLC—reminding them to comply with the FTC’s “Made in USA” (MUSA) requirements.

“‘Made in the USA’ is not just a slogan—it’s a sign that a product connects us to the workers and businesses that make America great,” said FTC chairman Andrew N. Ferguson. “Consumers want to have confidence that when they buy something labeled ‘Made in the USA’ they are actually supporting American workers and the American economy. Companies that falsely claim their products are ‘Made in the USA’ can expect to hear from the FTC.”

In the six letters, the agency said the Federal Trade Commission (FTC) Act bans “unfair or deceptive acts or practices in or affecting commerce.” The act also mandates that any representations regarding products being sold be “truthful, non-misleading, and adequately substantiated.”

As such, when a seller makes a claim that their product is “Made in the USA” or that it is of domestic origin, the item must be “all or virtually all” manufactured in the country.

The FTC said that USA labels must be given only to products when their final assembly or processing occurs in the country, and almost all ingredients or components are made and sourced from within the borders, according to the MUSA Labeling Rule.

In its letter to Americana Liberty, the FTC said while the company advertises its flagpoles as “American Made” and “Made in the USA,” complaints reviewed by FTC staff suggested the item could be “wholly imported.”

The agency made similar allegations regarding footwear products sold by Oak Street Manufacturing—products such as football shoulder pads and accessories sold by Pro Sports Group; and adult diapers, wipes, and other incontinence personal care products sold by Big Mountain Paper—that these products may either be wholly imported or contain “significant imported content.”

The agency warned the sellers that unless they can “adequately substantiate” that products are made in the United States, they will be held liable for violating the FTC Act and the MUSA Labeling Rule.

The FTC asked sellers to get in touch with officials within five business days to discuss their compliance with the FTC Act and the MUSA Labeling Rule.

As for letters sent to Amazon and Walmart, the FTC said the two companies should take action to “monitor, identify, and take corrective action against third-party sellers who make false or misleading “Made in USA” claims on their marketplaces.

In an emailed statement to The Epoch Times, a representative from Pro Sports Group said the company’s Custom Football Shoulder Pad Line is made in Jacksonville, Florida, with “American made materials.”

“We have provided the FTC the necessary proof and we are waiting to hear back. We do sell a Stock Standard Line that is imported and we do not advertise that as American made. These comply with the federal import rules regarding labeling for origin,” said the representative, adding that the company has welcomed the FTC to tour its production facility.

“Our plastic comes from NH, foam comes from TX and PA, and other materials come from FL, CA, CT, OH and MA. We are proud of the fact that our Custom Line is Made in the USA.”

Oak Street Bootmakers founder George Vlagos said the company is “happy to answer” any questions from the FTC to ensure it fulfills the compliance requirements.

“Since our founding in 2010, we have proudly showcased skilled American labor and the finest domestic materials. We remain ever committed to traditional shoemaking and the customers we serve,” he said.

Meanwhile, a Walmart spokesperson said the company operates an online marketplace allowing independent sellers to list their items, as do many other retailers.

“We have zero tolerance for noncompliant products from third-party sellers. When we identify non-compliant items, we take action and have these products removed.”

The Epoch Times reached out to the other three companies for comment and did not receive a response.

Boosting Made in America

The FTC’s crackdown against fake American-made labeled goods follows the Trump administration’s push to boost manufacturing in the United States.
In early April, President Donald Trump declared a national emergency to increase America’s competitive edge and secure the country’s economic security, according to an April 2 White House Fact Sheet.

“Large and persistent annual U.S. goods trade deficits have led to the hollowing out of our manufacturing base,” said the Fact Sheet.

“In 2023, U.S. manufacturing output as a share of global manufacturing output was 17.4 percent, down from 28.4 percent in 2001.” Between 1997 and 2004, the United States “lost around 5 million manufacturing jobs and experienced one of the largest drops in manufacturing employment in history.”

On July 7, Trump sent letters to several nations, including South Korea and Japan, informing them that reciprocal tariffs would be imposed on their products from Aug. 1. The president suggested these nations lower their trade barriers and open up their markets to bring down the tariff rates.
The letters are part of Trump’s commitment to “take back America’s economic sovereignty,” said a July 7 White House Fact Sheet.

“President Trump welcomes the business of our trading partners on American soil. As these countries are aware, there will be no tariff if they decide to build or manufacture products in our country,” it said.

“President Trump has committed that the United States will do everything possible to get approvals quickly, professionally, and routinely to bring back manufacturing jobs for Americans.”

This article has been updated with responses from Pro Sports Group, Oak Street Bootmakers, and Walmart. 
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Naveen Athrappully
Naveen Athrappully
Reporter
Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.