FTC Gets Tougher on ‘Made in USA’ Fraud
A new Federal Trade Commission rule will enable the government body to crack down on violators of ‘Made in the USA’ standards through a broader range of remedies, including civil penalty fines of up to $43,280 per violation. In a statement, the FTC said the new rule will especially benefit small businesses that rely on the ‘Made in the USA’ label but lack the resources to defend themselves from imitators.
“More broadly, this long overdue rule is an important reminder that the Commission must do more to use the authorities explicitly authorized by Congress to protect market participants from fraud and abuse,” commented FTC Commissioner Rohit Chopra.
The FTC’s new ability to seek redress, damages, penalties, and other relief from those who lie about a ‘Made in the USA’ label is contrary to longstanding, bi-partisan consensus that ‘Made in the USA’ fraud should not be penalized.
While the new FTC rule on the matter does not impose new requirements on businesses, it does codify the organization’s ‘Made in the USA’ guidance and allow it to seek restitution for victims.