For many American consumers, the “Made in USA” label is a mark of quality, trust, and patriotism. It reassures buyers that a product supports domestic manufacturing and American jobs. However, over the past few years, the Federal Trade Commission (FTC) has exposed several cases in which companies have falsely advertised products as “Made in USA.” We are going to take a look at some of these cases in this post.
Understanding the “Made in USA” Claim
First up, let’s discuss what “Made in USA” actually means according to the FTC. Under FTC guidelines, a product can be labeled “Made in USA” only if “all or virtually all” of its components are of domestic origin and it is assembled or processed in the United States. In other words, only negligible foreign content is permitted. This high standard—often described as the “all or virtually all” requirement—ensures that consumers receive products that truly support American manufacturing rather than imported goods masked with misleading claims.
Notable Cases: Companies That Were Found Guilty of Making False Claims
Unfortunately, while the vast majority of companies that claim to manufacture their products in the USA actually do so, there are a some companies that use the label falsely, knowing that by adding it to their marketing they may be able to sell more or command higher prices. Below are some of the more high profile cases that the FTC have brought about in the past few years.
1) Kubota North America Corporation
Kubota North America Corporation is a well-known manufacturer of agricultural equipment and replacement parts, and was fined $2 million by the FTC in January 2024.
Since at least 2021, the company had mislabeled thousands of replacement parts as “Made in USA,” even though they were entirely produced overseas. The company also failed to update its labeling after shifting production for some components abroad. Along with the fine, Kubota is now banned from making unqualified U.S.-origin claims unless all major processing and component sourcing take place domestically.
2) Chaucer Accessories, Bates Accessories & Bates Retail Group
These New England–based clothing accessories companies, known for selling belts, bags, and wallets, marketed their products as “Made in USA.” However, investigations found that many of these items were either entirely imported or contained significant foreign components, despite the labeling. As a result, in 2023 the FTC ordered the companies to stop making deceptive claims and secured more than $140,000 in consumer refunds, which were sent in 2024. The companies were also required to revise their advertising practices to ensure transparency about where their products are actually made.
3) Cycra, Inc.
Cycra is a North Carolina-based manufacturer of motocross and all-terrain vehicle (ATV) parts. Between 2019 and 2022, the company prominently advertised its products as being American-made across its website, social media platforms, and product packaging. In the FTC’s report, it outlines how their website featured a banner stating, “Proudly designed, developed and manufactured in Lexington, North Carolina,” and many product labels displayed the American flag alongside “Made in USA” statements.
However, the Federal Trade Commission (FTC) discovered that Cycra frequently imported parts and accessories from Asia and Europe. On two separate occasions, U.S. Customs and Border Protection officers intercepted shipments from Taiwan containing assembled products already labeled or intended to be labeled as “Made in USA.” These findings led the FTC to allege that Cycra’s claims violated both the FTC Act and the Made in USA Labeling Rule.
Under the FTC ruling, the company was required to notify consumers who had purchased falsely labeled products imported from Taiwan about the true origin of these items. More than $180,000 was sent in refunds to consumers who were harmed by these false claims.
4) Williams-Sonoma, Inc.
Williams-Sonoma is a well-known retailer of high-quality home furnishings and kitchenware and was found to have made misleading “Made in USA” claims. In 2020, the Federal Trade Commission (FTC) charged the company with falsely advertising certain products under its Goldtouch, Rejuvenation, Pottery Barn Teen, and Pottery Barn Kids brands as “Made in USA,” when they were wholly imported or contained significant foreign components. Williams-Sonoma agreed to a settlement, paying a $1 million civil penalty and consenting to an order prohibiting such deceptive claims.
However, despite this order, the FTC discovered that Williams-Sonoma continued to make misleading “Made in USA” representations. Notably, the company marketed Pottery Barn Teen mattress pads as “Crafted in America from domestic and imported materials,” while these products were actually made in China. Further investigations revealed six additional products with deceptive origin claims, violating the 2020 order.
As a result, in April 2024, Williams-Sonoma agreed to pay a record $3.175 million civil penalty—the largest ever in a “Made in USA” case.
5) Instant Brands and Pyrex
During the COVID-19 pandemic, Instant Brands, the maker of Pyrex kitchenware, faced unprecedented demand for products like their glass measuring cups (we all remember that period when the whole world was cooking). To meet this surge, between May 2021 and March 2022, the company shifted production of certain measuring cups to China. However, they continued to market these products as “Made in USA,” leading to consumer confusion and complaints.
In response, the Federal Trade Commission (FTC) launched an investigation, revealing that over 110,000 Chinese-made measuring cup sets were sold under the misleading label. This led to a settlement where Instant Brands agreed to cease deceptive “Made in USA” claims and pay $129,416. The FTC is distributing more than $88,000 of this amount to over 10,000 affected consumers.
6) Old Southern Brass
Old Southern Brass specializes in firearm-related accessories like bullet-shaped whiskey glasses and bottle openers and was another company to face significant legal action due to deceptive marketing practices. The Federal Trade Commission (FTC) discovered that, despite the company’s assertions of being “100% American made,” many products were entirely manufactured in China or contained substantial imported components.
Beyond misleading “Made in USA” claims, Old Southern Brass falsely advertised itself as a veteran-operated business that donated 10% of its sales to military charities. In reality, the company was not veteran-operated, and its charitable contributions amounted to less than 0.5% of sales.
In 2023, the FTC issued a proposed order prohibiting Old Southern Brass and its owner, Austin Oliver, from making deceptive claims regarding product origin, military affiliations, or charitable contributions. The order imposed a monetary penalty of $4,572,137.66, partially suspended due to the defendants’ inability to pay, requiring a payment of $150,000 to the FTC.
7) Lithionics Battery
Lithionics Battery is a Florida-based manufacturer of lithium-ion batteries for boats and recreational vehicles that was found to be falsely marketing its products as “Made in USA” while they were actually manufactured in China. The Federal Trade Commission (FTC) alleged that, since at least 2018, Lithionics labeled its battery products with an American flag image surrounded by the words “Made in U.S.A.” and the statement “Proudly Designed and Built in USA,” despite the fact that the products incorporated imported lithium-ion cells and significant imported components.
In April 2022, under the new Made in USA Labeling Rule, the FTC enforced a settlement requiring Lithionics to pay a civil penalty of $105,319.56, equivalent to three times the company’s profits from the illegal activity.
8) Resident Home
Resident Home LLC is the parent company of mattress brands DreamCloud and Nectar Sleep, and was found to have falsely advertised its DreamCloud mattresses as being made from “100% USA-made premium quality materials,” when, in reality, these mattresses were finished overseas and contained significant imported materials.
This was not Resident Home’s first encounter with the FTC. In 2018, the company settled charges for falsely advertising its Nectar mattresses as “Assembled in USA.” Despite this prior settlement, Resident Home continued to make misleading U.S.-origin claims about its DreamCloud mattresses.
As a result, in October 2021, the FTC imposed a $753,000 penalty on Resident Home for these deceptive claims. The settlement also prohibited the company from making unqualified U.S.-origin claims unless they could demonstrate that their products were entirely or virtually entirely made and sourced in the United States.
9) Electrowarmth Products
Electrowarmth Products, LLC faced legal action from the Federal Trade Commission (FTC) for falsely advertising its products as “Made in USA” after shifting production to China. Established in 1939, Electrowarmth had a longstanding reputation for producing American-made heated mattress pads, particularly for truck bunks. However, in 2019, to reduce costs, the company moved its manufacturing operations overseas, ceasing the use of U.S.-made textiles. Despite this change, Electrowarmth continued to market its products with claims such as “Made in USA,” “Made in the USA since 1939,” and “made-in-America products,” misleading consumers about the true origin of their products.
The FTC’s investigation revealed that Electrowarmth instructed its Chinese manufacturer to produce and package the mattress pads identically to their previous U.S.-made versions, further perpetuating the deception. This conduct violated both the Textile Fiber Products Identification Act and the Federal Trade Commission Act.
10) Lions Not Sheep
Lions Not Sheep is an apparel company known for its bold, patriotic messaging, but was found guilty of deceptive labeling practices. The Federal Trade Commission (FTC) discovered that between May and October 2021, the company removed “Made in China” tags from their apparel and replaced them with counterfeit “Made in USA” labels. This misleading practice led to a $211,335 fine and a mandate to correct their labeling to accurately reflect the products’ origins.
The FTC’s investigation revealed that Lions Not Sheep’s products, including t-shirts, sweatshirts, jackets, and hats, were imported from countries like China, with minimal finishing work performed in the United States. Despite this, the company marketed these items with claims such as “Made in the USA,” “100% AMERICAN MADE,” and “BEST DAMN AMERICAN MADE GEAR ON THE PLANET.”
