FTC Urges Amazon and Walmart to Act on False ‘Made in USA’ Product Claims

New York — The U.S. Federal Trade Commission (FTC) has formally called on e-commerce giants Amazon and Walmart to address and remove deceptive “Made in USA” claims made by third-party sellers on their platforms. The regulatory push comes amid growing concerns over misleading labels that may be manipulating consumer trust and patriotism to drive sales.

In letters dated July 8, the FTC detailed multiple instances in which vendors selling through both platforms misrepresented the origin of their products, falsely labelling them as domestically manufactured.

“Consumers want to have confidence that when they buy something labelled ‘Made in the USA,’ they are actually supporting American workers and the American economy,” said FTC Chair Andrew Ferguson in an official statement.

FTC Demands Action From Online Retailers

The Commission urged both Amazon and Walmart to take “corrective action” against sellers who make unsubstantiated domestic origin claims in violation of federal law. These practices also contravene the internal codes of conduct of both retailers.

Walmart responded promptly, stating that it has a “zero-tolerance policy” for noncompliant products sold by third-party sellers and removes such listings upon identification.

Amazon did not immediately issue a public response.

Four Other Companies Also Under Scrutiny

In addition to the letters to Amazon and Walmart, the FTC issued formal warnings to four smaller retailers, instructing them to halt “Made in USA” claims unless they can demonstrate that their products are “all or virtually all” made in the United States.

The businesses named include:

• Oak Street Bootmakers, Chicago, IL

• Stand Flag Poles, Fort Lauderdale, FL

• Pro Sports Pads, Jacksonville, FL

• USA Big Mountain Paper, Jacksonville, FL

Joshua Baker, CEO of Pro Sports Pads, defended his company’s compliance, stating it manufactures its Pro Gear Custom shoulder pads in Jacksonville using domestic materials. The other companies did not respond to requests for comment.

A Pattern of Deceptive Labelling

The FTC has taken a firm stance on product labelling violations in recent years. Since the implementation of the Made in USA Labeling Rule in 2021, the agency has prosecuted 11 enforcement actions resulting in $15.8 million in judgments. High-profile cases include actions against Williams-Sonoma and Instant Brands, the maker of Pyrex kitchenware.

These violations typically involve companies attempting to leverage patriotic branding and higher perceived quality to command premium pricing, despite products being made or assembled abroad.

What Consumers Should Know

The FTC recommends consumers scrutinise product details and seller information before making purchases online. Claims such as “Made in USA” should be supported by clear and verifiable evidence. According to the agency, such designations are only legally permissible when products are entirely or nearly entirely made within the United States.