What does the FTC Act specify about the phrase 'Made in the USA'?

• A. It is illegal to market a product with this phrase unless all or virtually all contents are domestically manufactured
• B. It is illegal to use the phrase under any circumstances
• C. It is allowed if the product is at least partly domestically manufactured
• D. It is allowed if the company is registered in the US

Answer: (B)

The truth-in-advertising standard for “Made in USA” comes from the FTC’s guidelines on domestic origin claims. A claim like this is not a blanket permission; it must be truthful and not misleading. To qualify as Made in USA, the product needs to be all or virtually all domestically produced, meaning the final product is manufactured or processed in the United States and the components are predominantly domestic. If there is any significant foreign content, the claim would be misleading unless you use a qualifying disclaimer that accurately describes the domestic/foreign mix. That’s why the statement that it’s illegal to market the phrase under any circumstances isn’t correct—the phrase can be used when the all-or-virtually-all domestic standard is met. The other options are off because mere domestic registration doesn’t justify the claim, and partial domestication isn’t enough to make a blanket Made in USA claim without a disclaimer.