Under FTC rules, when can a product legally bear the phrase 'Made in USA'?

• A. It is illegal to market a product with this phrase unless all or virtually all contents are domestically manufactured
• B. It is allowed regardless of contents
• C. Only used if 100% domestic
• D. Requires government approval

Answer: (A)

The key idea is that a Made in USA label must be truthful and not misleading, which the FTC enforces by requiring that the product be all or virtually all domestically produced. In practice, this means the final product’s processing must occur in the United States and the vast majority of its ingredients or components come from U.S. sources. A tiny amount of foreign content may be allowed, but the claim becomes misleading if the product isn’t essentially entirely domestically produced. That’s why the statement saying you can’t use the phrase unless all or virtually all contents are domestically manufactured is the best answer. The other choices aren’t correct because the FTC does not pre-approve labels, the requirement isn’t strictly 100% domestic (virtually all is acceptable), and the label isn’t allowed regardless of contents.