The Federal Trade Commission (FTC) announced enforcement measures against three companies that falsely claimed their products were made in the United States, following President Trump’s March executive order aimed at ensuring truthful “Made in America” advertising.
The FTC’s actions target sellers of American flags and flagpole kits, home and commercial entertainment systems, and footwear products. Each company allegedly made unqualified and unsupported “Made in USA” claims in advertising and product labeling.
TouchTunes Settlement
The FTC filed a complaint against TouchTunes Music Company, LLC for falsely claiming that its electronic dartboards were made in the USA. Although final assembly occurred domestically, essential components such as computer chips, cameras, and flatscreen monitors were imported. The FTC argued that these unqualified claims violated the FTC Act and the Made in USA Labeling Rule.
TouchTunes agreed to a proposed order including a $625,000 consumer redress fund—the largest ever in a Made in USA Labeling Rule case—and prohibitions on future misleading claims about product origin. The order also requires TouchTunes to notify consumers of the settlement. The complaint and order will be filed in the U.S. District Court for the Southern District of New York.
Americana Liberty and Related Parties
The FTC brought an enforcement action against Americana Liberty LLC, Three Nations LLC, and their principals for falsely advertising American flags, military flags, and patriotic display products as “Made in the USA” or 100% American made.
The complaint states that several products were wholly imported from China or contained significant foreign components, despite the companies’ claims. Additionally, the FTC cited violations of the Textile Act and related rules, including failure to disclose the foreign origin of the flags on product labels and advertising.
To resolve the allegations, the companies agreed to a settlement requiring approximately $167,743 in consumer redress and prohibiting further deceptive origin claims.
FTC Commitment to Honest “Made in USA” Claims
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, emphasized the Commission’s commitment to enforcing truthful origin claims to protect American consumers and businesses. Ensuring accurate “Made in USA” labels supports U.S. manufacturers and promotes fair competition.
Why it matters
These enforcement actions highlight ongoing FTC efforts to safeguard consumer trust and prevent unfair competition by policing “Made in USA” claims. Accurate product origin labeling helps consumers make informed purchasing decisions, supports domestic manufacturing, and maintains marketplace integrity.
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Sources
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