On July 16, 2020, the Federal Trade Commission (FTC) published in the Federal Register a Notice of Proposed Rulemaking (NPRM) seeking comments on a rule related to “Made in USA” and other unqualified U.S.-origin claims on product labels (MUSA). Deadline for comments would be September 14, 2020.

The FTC proposes the MUSA Labeling Rule pursuant to its rulemaking authority under <15 U.S.C. 45a-label on products>, which grants the Commission authority to issue rules to prevent unfair or deceptive acts or practices relating to MUSA labeling. The proposed rule tracks the FTC’s previous MUSA Decisions and orders by prohibiting marketers from including unqualified MUSA claims on labels unless:     

• final assembly or processing of the product occurs in the United States,

• all significant processing that goes into the product occurs in the United States, and

• all or virtually all ingredients or components of the product are made and sourced in the United States.

The proposed rule also covers labels making unqualified MUSA claims appearing in mail order catalogs or mail order advertising.

If adopted, the MUSA labeling rule would be codified in a new 16 C.F.R. Part 323.

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