clock menu more-arrow no yes

Filed under:

FTC may stop trying to ease rules for `Made in USA' labels

The Federal Trade Commission is likely to drop a push to make it easier for companies to put a "Made in USA" label on products that have foreign parts, The Washington Post reports.

The proposed guidelines would have allowed companies to use the label if "substantially all" of a product was made from American parts or assembled by U.S. laborers. Under that proposal, merchandise with as little as 75 percent U.S. parts or labor would be able to use the label.Current rules forbid companies from claiming their product was "Made in USA" if it has more than a small amount of foreign content. While the percentage of non-U.S. content has never been specifically set, FTC officials have said it is a very small or insignificant.

Labor unions and some lawmakers had opposed the proposed new guidelines, arguing they would encourage corporations to send jobs overseas.

Jodie Bernstein, director of the FTC's consumer protection bureau, is expected to recommend to the full commission that the old "all or virtually all" standard be retained, the Post reported in Tuesday's editions. She also will recommend the panel clarify the exact meaning of the phrase, which has been long criticized as vague.