FTC Cracks Down on Misleading ‘Made in the USA’ Claims: What SaaS Companies Need to Know

Executive Summary

The Federal Trade Commission (FTC) has issued warning letters to seven companies for allegedly misrepresenting their products as 'Made in the USA' when, in fact, these products were imported in whole or in significant part. This crackdown underscores the importance of complying with the FTC's Made in the USA Standard. SaaS companies, especially those involved in e-commerce or product sales, must ensure their marketing claims are truthful and not deceptive.

Background and Context

The 'Made in the USA' label is a significant marketing tool for many companies, suggesting that a product is entirely or substantially made in the United States. However, the FTC has strict guidelines regarding the use of this label, outlined in the Made in the USA Standard. The standard requires that products labeled as 'Made in the USA' must be 'all or virtually all' made in the United States. This means that the product must be manufactured, produced, or assembled in the US, with negligible foreign content.

Key Provisions or Requirements

The key provision of the FTC's Made in the USA Standard is that for a product to be labeled as 'Made in the USA', it must meet the 'all or virtually all' standard. This standard is not just about where the final assembly takes place but also considers the origin of the components and materials used in the product. Companies must be able to substantiate their claims with competent and reliable evidence, such as records of the manufacture, production, or assembly process.

Impact on SaaS Companies

For SaaS companies, particularly those that sell physical products or partner with manufacturers, understanding and complying with the FTC's Made in the USA Standard is crucial. Misrepresenting products as 'Made in the USA' can lead to severe consequences, including warning letters, fines, and damage to the company's reputation. SaaS companies must ensure that any marketing claims they make about their products are truthful and can be substantiated. This includes claims made on websites, social media, and in advertising.

Compliance Deadlines and Timeline

While the FTC's warning letters to the seven companies do not specify a compliance deadline, companies receiving such letters are typically expected to respond promptly, usually within a few weeks, detailing the actions they will take to come into compliance. For other companies, there is no specific deadline, but it is essential to review marketing practices immediately to avoid similar actions.

Recommended Actions for SaaS Operators

Review Marketing Claims: SaaS companies should immediately review all marketing claims related to the origin of their products.

Understand the FTC Standard: Ensure a clear understanding of the 'all or virtually all' standard and what it means for product labeling.

Substantiate Claims: Have evidence to back up any 'Made in the USA' claims, including records of where components and materials are sourced.

Train Staff: Educate marketing and sales teams on the importance of accurate labeling and the potential consequences of misrepresentation.

Monitor FTC Guidance: Keep up-to-date with the latest guidance and enforcement actions from the FTC regarding 'Made in the USA' claims.

Source Citations

• Federal Trade Commission. (2026, July 6). FTC Warns Companies Making Questionable ‘Made in the USA’ Claims. Retrieved from https://www.ftc.gov/news-events/news/press-releases/2026/07/ftc-warns-companies-making-questionable-made-usa-claims
• Federal Trade Commission. Complying with the Made in the USA Standard. Retrieved from https://www.ftc.gov/tips-advice/business-center/guidance/complying-made-usa-standard