Looser guidelines for “Made in the USA” claims enacted in California

made-in-the-usaCalifornia’s prohibitive “Made in the USA” label requirements have been relaxed by an amendment to state law.  As reported by the law firm of DrinkerBiddle, effective September 1, companies are now allowed “to label their products as ‘Made in the USA’ if less than 5% of the product’s wholesale value is from foreign components, or if less than 10% of the wholesale value is from foreign components which are unavailable in the United States.”

Now California’s law is more closely aligned with Federal Trade Commission’s “Made in the USA” standard, although the state has actually set forth objective standards which will be used to evaluate claims (the FTC continues to evaluate claims on a case-by-case basis without a quantitative standard).

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