PPB June 2021

many began to ask, why does the United States not have the capacity to manufacture products in the midst of a sudden, urgent need? Although companies across the country, including numerous industry suppliers, retrofitted their businesses to meet the needs of their communities, calls to reignite U.S. manufacturing have empowered “Made in the U.S.A.” products. "Buy American" has been a rallying cry for more than a decade. The interest in American-made products got a boost in 2019 when President Trump signed an executive order requiring federal agencies to purchase products using domestic components. The order strengthened standards under the Buy American Act, enacted in 1933, which creates a preference for U.S.-made products. Trump’s order was also aimed at increasing the percentage of U.S. components for qualifying American-made products from 50 percent to 75 percent. In January, President Biden signed an executive order to further encourage the federal government’s purchase of U.S.-manufactured goods and services. The “Made In All Of America” initiative is a national commitment to make a historic investment in American products, services, supply chains and the transportation of goods. To do this, Biden’s executive order tightens domestic content rules, closing loopholes to allow products to be labeled "Made in America" for purposes of federal procurement, even if barely 51 percent of the materials used to produce them are manufactured domestically. It is unclear howmuch the threshold will rise. The order also seeks to end false advertising and tighten waivers for Buy American requirements. "When we buy American, we will buy from all of America," said Biden. "This is a Uncle Sam Is Watching It’s not easy being American-made. In April, a small promotional products company settled with the Federal Trade Commission (FTC), agreeing to pay a monetary judgment of $146,249.24. The company was charged with making false, misleading or unsupported advertising claims that their customizable promotional products were “all or virtually all” made in the U.S. Although the items were wholly imported from China, the company made numerous claims that the novelty items were “Made in the U.S.A.,” “U.S.A.-made” and “Manufactured Right Here in America!” Recently, the FTC has increased its focus on enforcing against misleading “Made in U.S.A.” claims. A month before the supplier’s settlement, the FTC made a $1.2 million settlement, the largest “Made in U.S.A.” judgment ever, against glue manufacturer Chemence after it violated a 2016 order involving deceptively- labeled glue products containing imported components. As the value of American- made products rise, lawmakers are looking at claims with renewed scrutiny. President Biden’s “Made In All of America” executive order promised to end false advertising, cracking down on companies that falsely label products as Made in America. In February 2021, Sen. Mike Lee (R-Utah) and Sen. Angus King (I-Maine) introduced a bill to amend Commerce and Trade Code § 45a, seeking to create a single national standard for “Made in the U.S.A.” claims. For marketers, there are three types of claims American-made products can fall under. 1 Unqualified - U.S. origin claims for any product must show that the product’s final assembly or processing—and all significant processing—took place in the U.S., and that all or virtually all ingredients or components of the product are made and sourced in the U.S. 2 Qualified - “Made in the U.S.A.” claims must include a clear and conspicuous disclosure immediately adjacent to the representation that accurately conveys the extent to which the product contains foreign parts, ingredients or components, or processing 3 Assembled - these products are substantially transformed in the U.S. last, their principal assembly takes place in the U.S., and U.S. assembly operations are substantial In June 2020, the FTC proposed a rule to prohibit marketers from including unqualified “Made in the U.S.A.” claims on labels unless: (1) final assembly or processing of the product occurs in the U.S.; (2) all significant processing that goes into the product occurs in the U.S.; and (3) all or virtually all ingredients or components of the product are made and sourced in the U.S. | JUNE 2021 | 27 GROW