Under a new Executive Order “Made in the USA” label claims on dietary supplements will come under more scrutiny. This effort could generate more trust in country-of-origin labeling for consumers yet create a burdensome hurdle for U.S.-based supplement manufacturers.
At its core, Executive Order (EO)14392, titled “Ensuring Truthful Advertising of Products Claiming to Be Made in America,” aims to ensure that products labeled as American made are indeed made in America. The stated goal is to protect consumers and domestic manufacturers from companies that falsely label their products as American-made.
What will change under the order
Federal Trade Commission (FTC) enforcement: The agency should prioritize enforcement against supplement sellers and manufacturers making false or unsubstantiated “Made in the USA” label claims.
Voluntary ‘Made in the USA’ Labeling: Agencies with oversight of country-of-origin labeling should consider creating regulations that guide such labeling for domestically-produced products and ensure businesses receive ongoing guidance.
Online retailers: The FTC should consider proposing regulations to hold online sellers accountable if they fail to establish guidelines for verifying country-of-origin claims.
Federal contracting: Agencies overseeing government contracts must periodically review and verify any “Buy American Act,” “Country of Origin USA,” or similar origin claims for products bought under those contracts. Products that violate “Made in America” claims will be removed from the marketplace. Offenders may be referred to the Department of Justice for criminal investigation.
What will not change under the order
The EO does not change the current legal definition of “Made in the USA.” The FTC’s 2021 Made in USA Labeling Rule states that for a product to claim it’s made in America, “all or virtually all” of it must be made and sourced in the USA. If not, it directs the FTC to heavily penalize companies that falsely market or label their products as American-made.
Under the new EO, enforcement will be more likely, and manufacturers may need better documentation of any non-U.S. sourced ingredients. However, qualified claims will still be permitted, such as “Manufactured in the USA with domestic and imported ingredients.”
While the EO may be a win for consumer transparency, American-based companies may need to rethink how they brand and market their products in the U.S.
