Should Federal Standards for “Made in USA” Labels Supersede State Regulations? (S. 118)

What is S. 118?

(Updated July 30, 2019)

This bill would require the Federal Trade Commission’s (FTC) standard for products labeled as “Made in USA” or “Made in America” to supersede state regulations of the use of such labels for products sold across state lines or in foreign countries. It was introduced to prevent California and other states from enforcing a more stringent standard than the FTC’s Made in USA Standard.

The FTC’s standard holds that “all or virtually all” of a product must be made or assembled in the U.S. in order for businesses to promote products as “Made in USA.” Country of origin labels are required to be disclosed on automobiles, in addition to textile, wool, and fur products — but the FTC’s policy applies to all uses of “Made in USA” labels, whether required or not.

Not only would this legislation apply to “Made in USA” labeling on the physical product, but it would also apply to marketing materials and how that product is introduced, advertised, offered for sale, or sold.

Argument in favor

The FTC’s guidelines for “Made in America” labels should continue to be the standard businesses use for that label. States shouldn’t enforce their own standards because it could negatively impact interstate commerce.

Argument opposed

If individual states want to implement “Made in USA” labeling requirements beyond the FTC’s standard of “all or virtually all” of a product being made in the U.S. they should be able to. It should be businesses’ job to comply with each state’s standard.

Impact

Businesses that wish to use a “Made in America” or “Made in USA” label on their products; states that want to enforce a stricter standard than the FTC; and the FTC.

Cost of S. 118

A CBO cost estimate is unavailable.

Additional Info

In-Depth: This legislation was introduced in response to California’s “Made in USA” standard, which only allowed the use of the label when a product was entirely manufactured and assembled in the U.S. While California has since relaxed its standard following complaints, other states could potentially adopt similar standards that burden businesses, which is why Sen. Angus King (I-ME) signed on to this bill as an original cosponsor:

“The revitalization of American manufacturing begins with ensuring that U.S. manufacturers do not face excessive burdens at home. And allowing a more complex and burdensome state standard on so-called Made in the USA labeling to supersede a strong federal standard complicates the work of manufacturers across the country who are, in fact, making it in America, and contributing to their local economies.”

Sponsoring Sen. Mike Lee (R-UT) explained that making the existing federal standard the only standard for “Made in USA” labeling would be beneficial for the economy:

“The ‘Made in USA’ label carries a great deal of importance and influence and many companies strive to boast that their products meet the country’s rigorous standard. Without weakening the standard, my colleagues and I hope to make use of the label less complicated, thus supporting American manufacturing jobs, limiting frivolous lawsuits, and strengthening the U.S. economy.”

This legislation was passed by the Senate Commerce, Science, and Transportation Committee on a voice vote, and it is currently cosponsored by four Senators, including three Republicans and one Independent.

Media:

• Sponsoring Sen. Mike Lee (R-UT) Press Release (Previous Version)
• Senate Commerce, Science, and Transportation Committee Press Release (Previous Version)
• Lifetime Products (In Favor - Previous Version)