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U.S. FTC Tells Amazon, Walmart to Crack Down on Deceptive ‘Made in USA’ Claims

UNITED STATES, JUL 8 – The FTC demands Amazon and Walmart act against false domestic product claims by third-party sellers, citing $15.8 million in enforcement judgments from 11 cases between 2021 and 2024.

  • On July 8, 2025, the U.S. Federal Trade Commission urged Amazon and Walmart to take stronger measures against third-party vendors who falsely advertise their products as "Made in USA" on the companies’ online platforms.
  • This action follows the FTC's 2021 Made in USA Labeling Rule aimed at protecting businesses and consumers from misleading labeling practices that exploit patriotism to induce higher payments.
  • The FTC issued warning letters to four smaller retailers, requiring them to stop using "Made in USA" claims unless they can verify that nearly all the products they market under this label are produced domestically. Meanwhile, Walmart emphasized its strict policy against noncompliant third-party items, promptly removing any products found to violate these standards.
  • FTC Chairman Andrew Ferguson emphasized that consumers expect genuine support for American workers when purchasing products labeled as made in the USA, while the head of Pro Sports Pads verified the company's adherence to labeling regulations by submitting evidence showing their Pro Gear Custom shoulder pads are manufactured in Jacksonville, Florida using domestic materials.
  • The FTC’s enforcement actions have yielded $15.8 million in judgments across 11 cases between 2021 and 2024, highlighting ongoing efforts to ensure truthful country-of-origin claims and protect the American economy.
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U.S. News broke the news in New York, United States on Tuesday, July 8, 2025.
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