California Courts Uphold Made in USA Law

“Made in USA” may look like a tiny phrase on a label, but in California it carries the legal weight of a forklift. For consumers, it suggests domestic labor, local manufacturing, supply-chain transparency, and perhaps a little patriotic sparkle. For businesses, it can be a powerful marketing claim. For courts, however, it is not decoration. It is a factual representation that must be backed by evidence, not vibes, flags, or a red-white-and-blue font choice.

Recent California court decisions have reinforced a clear message: California’s Made in USA law still matters, even after the Federal Trade Commission adopted its national Made in USA Labeling Rule. Companies selling products in California cannot simply point to federal standards and assume state law disappears like a coupon code after checkout. Courts have recognized that federal and state rules can coexist, and marketers must pay attention to both.

This matters because consumers increasingly care where products are made. A Made in USA claim can influence purchasing decisions, justify premium pricing, and help brands stand out in crowded markets. But when the claim is wrong, vague, or unsupported, it can trigger lawsuits, regulatory scrutiny, consumer backlash, and reputational damage. In other words, the label may be small, but the consequences are not.

What California’s Made in USA Law Actually Says

California Business and Professions Code Section 17533.7 restricts the use of phrases such as “Made in U.S.A.,” “Made in America,” “U.S.A.,” and similar origin claims when merchandise or any article, unit, or part of it has been entirely or substantially made, manufactured, or produced outside the United States.

For years, California was known for having one of the strictest Made in USA standards in the country. Businesses complained that the old version was nearly impossible to satisfy in a global supply chain. A product might be designed, assembled, packaged, and substantially manufactured in the United States, but one small imported screw, spring, fabric trim, spice, or electronic component could create legal risk in California. That is not exactly a relaxing environment for a compliance team trying to sleep at night.

In 2015, California amended the law to add practical safe harbors. Today, merchandise made, manufactured, or produced in the United States may still qualify for a Made in USA label if foreign articles, units, or parts make up no more than 5 percent of the final wholesale value of the product. A second safe harbor allows up to 10 percent foreign content by final wholesale value when the manufacturer can show the foreign component could not be produced or obtained domestically.

That amendment did not turn California into the Wild West of country-of-origin advertising. It simply replaced an almost absolute standard with percentage-based guideposts. Brands still need documentation, supplier records, cost calculations, sourcing data, and a sober understanding of what their claim communicates to ordinary buyers.

The Federal FTC Standard: “All or Virtually All”

At the federal level, the FTC has long required that an unqualified Made in USA claim be truthful and substantiated. The familiar standard is “all or virtually all.” In plain English, that means final assembly or processing should occur in the United States, all significant processing should occur in the United States, and all or virtually all ingredients or components should be made and sourced domestically.

The FTC does not treat “Made in USA” as a casual slogan. It looks at the overall impression created by labels, advertising, websites, catalogs, seals, tags, social media, and other promotional materials. A company may not literally print the words “Made in USA” and still create an implied U.S.-origin claim through flags, factory imagery, “American quality” language, or proud references to domestic facilities.

The FTC’s 2021 Made in USA Labeling Rule added extra bite by allowing civil penalties for unqualified Made in USA labels that do not meet the standard. That development gave regulators a bigger stick, and recent enforcement activity shows they are not afraid to keep it polished.

Why California Courts Said the State Law Still Stands

The key legal fight has centered on preemption. In simple terms, preemption asks whether federal law overrides state law. Some plaintiffs argued that the FTC’s stricter “all or virtually all” standard should preempt California’s percentage-based safe harbors. Courts in California have rejected that argument.

In McCoy v. McCormick & Company, a plaintiff challenged origin-related claims on French’s mustard products, including language such as “Crafted and Bottled in Springfield, MO, USA” and “American Flavor in a Bottle.” The plaintiff argued that California’s safe harbors were preempted by the FTC rule. The court disagreed, finding that the federal rule did not wipe out California’s statute because the two systems were not necessarily inconsistent.

The same general reasoning appeared in Corona v. It’s a New 10, LLC, involving hair care products marketed with Made in USA claims. The court concluded that California’s safe harbor provisions were not expressly or conflict preempted by the FTC rule. Both frameworks share a consumer-protection goal: preventing deceptive origin claims. The court was not persuaded that a state law is preempted merely because it uses a different structure or may be less strict in certain applications.

The practical takeaway is straightforward: California’s Made in USA statute remains alive. Businesses cannot assume that federal compliance automatically solves California risk. They also cannot assume that fitting into a California safe harbor guarantees the FTC will agree with the claim. Congratulations, marketers: you may need two checklists. Maybe three, if the legal department drinks espresso.

Kwikset and the Power of Consumer Reliance

California’s Made in USA story did not begin with the recent preemption cases. One of the most influential decisions is Kwikset Corp. v. Superior Court, decided by the California Supreme Court in 2011. The case involved locksets allegedly labeled Made in USA even though they included foreign-made parts or foreign manufacturing.

The court held that consumers who alleged they bought products because of a false Made in USA representation could have standing under California’s unfair competition and false advertising laws. The reasoning was important: a consumer may suffer economic injury if they spend money on a product they otherwise would not have purchased due to a misleading label.

For businesses, Kwikset is a reminder that origin claims are not empty puffery. People care about them. Some buyers choose domestic products to support American jobs. Some associate U.S. production with quality control. Some simply prefer transparent sourcing. When a company uses Made in USA language, courts may treat that statement as material to the purchase decision.

Why “Made in USA” Claims Are So Risky

Country-of-origin advertising is risky because supply chains are messy. A product can be designed in California, assembled in Ohio, packaged in Texas, and still include imported steel, fabric, minerals, electronics, chemicals, flavoring, or packaging components. That does not automatically make every origin claim false, but it does mean the company must choose its wording carefully.

An unqualified claim such as “Made in USA” communicates more than “we did some work here.” It suggests the product is essentially domestic. If that is not true, a qualified claim may be safer. Examples include “Made in USA with imported materials,” “Assembled in USA from domestic and imported components,” or “Designed in California, manufactured in Mexico.” These statements may be less flashy, but they have one powerful advantage: they are less likely to invite a lawsuit wearing tap shoes.

Common Mistakes Businesses Make

One common mistake is relying on supplier assurances without verification. A vendor may say a component is domestic, but if the business never checks documentation, that assurance may not be enough. Another mistake is using the same product page language across an entire product line when only some items meet the standard. The FTC specifically warns against suggesting that an entire product line is Made in USA when only certain products qualify.

A third mistake is forgetting digital marketing. Modern labels are not limited to stickers on boxes. Online product pages, marketplace listings, catalog images, icons, badges, and even social media graphics can create Made in USA claims. If the website says one thing, the packaging says another, and the supplier invoice says something else entirely, the brand has not created a marketing strategy. It has created evidence.

Recent Enforcement Shows the Stakes Are Real

Federal enforcement has become especially visible. In 2024, Williams-Sonoma agreed to pay a record civil penalty of more than $3 million after the FTC alleged that multiple products were advertised as Made in USA when they were actually made in China and other countries. The case was a loud reminder that origin claims can become expensive when regulators believe a company ignored prior obligations.

In 2025, the FTC also urged major online marketplaces to improve policing of deceptive Made in USA claims by third-party sellers. The agency sent warning letters involving categories such as footwear, flagpoles, football equipment, and personal care products. That activity shows the FTC is not only watching manufacturers. Retailers, marketplaces, and advertisers can also face pressure when misleading origin claims reach consumers.

Private litigation is another pressure point. Plaintiffs’ lawyers have challenged Made in USA statements in food, personal care, tools, apparel, household goods, and other consumer products. Even when defendants win early motions, the cost of litigation can be painful. A label that takes five seconds to approve can take years to defend. That is not great return on investment.

What Businesses Should Do Before Using a Made in USA Claim

Before using an unqualified Made in USA claim, companies should perform a complete origin review. That review should identify where final assembly occurs, where significant processing occurs, where key components come from, how much foreign content contributes to final wholesale value, and whether any imported inputs are essential to the product’s form or function.

Documentation matters. Businesses should keep bills of materials, supplier certifications, manufacturing records, cost breakdowns, purchase orders, country-of-origin declarations, and internal approval notes. The goal is not to build a paper mountain for fun. The goal is to prove that the claim was substantiated before it was made.

Companies should also train marketing teams. The legal department may know the difference between “Made in USA,” “Assembled in USA,” “Designed in USA,” and “Made in USA with imported parts,” but a social media manager rushing to post before lunch may not. Clear internal rules can prevent accidental exaggeration.

A Practical Compliance Checklist

First, identify every place the claim appears: packaging, websites, marketplace listings, ads, catalogs, emails, social media, sell sheets, and distributor materials. Second, compare each claim against current sourcing. Third, confirm that the claim matches both FTC expectations and California’s Section 17533.7 requirements. Fourth, revise vague or risky language into accurate qualified claims where necessary. Finally, repeat the review when suppliers change. A Made in USA claim is not a slow cooker. You cannot set it and forget it.

What Consumers Should Understand

Consumers should know that Made in USA claims are regulated, but not every claim means the same thing. “Made in USA” is stronger than “Assembled in USA.” “Designed in USA” may say nothing about manufacturing location. “Made in USA with imported materials” tells a more nuanced story. The words matter, and so does the overall impression.

Shoppers who care deeply about domestic sourcing should read labels closely, review brand disclosures, and be cautious with patriotic imagery that does not include a clear factual statement. A waving flag on a product page may look charming, but charm is not a country-of-origin certificate.

Experience-Based Insights: Lessons from the Real World of Labels, Supply Chains, and Consumer Trust

In practice, Made in USA compliance often becomes complicated not because companies are trying to mislead consumers, but because different teams speak different languages. The sourcing team talks about vendors. The operations team talks about assembly. The finance team talks about wholesale value. The marketing team talks about brand identity. Then someone suggests adding a “Made in USA” badge because it looks nice near the “Add to Cart” button. That is usually when trouble walks in wearing work boots.

One useful experience from product compliance work is that origin claims should be reviewed at the product level, not the brand level. A company may manufacture one item domestically and import another nearly identical item. If the website template automatically applies the same Made in USA statement to both products, the brand may create a false claim without anyone intentionally doing anything wrong. Automation is wonderful until it mass-produces legal risk.

Another practical lesson is that supplier certifications should be treated as a starting point, not the finish line. Suppliers may misunderstand the legal standard, especially if they operate internationally or serve customers in multiple jurisdictions. A component supplier might certify that its own processing occurred in the United States while omitting the origin of raw materials. A packaging vendor might change sources without flagging the issue. A manufacturer that relies blindly on old paperwork may discover too late that yesterday’s accurate claim became today’s problem.

Businesses also learn quickly that qualified claims are not a sign of weakness. In many cases, they are a sign of maturity. “Assembled in USA with imported components” may not sound as bold as “Made in USA,” but it can build trust because it gives consumers a clearer picture. Modern shoppers are not allergic to nuance. They are allergic to feeling tricked. A transparent claim can preserve goodwill while reducing exposure under California law, FTC standards, and private false advertising theories.

From a branding perspective, the safest companies are often those that create a formal claim-approval process. No origin statement should go live unless legal, compliance, sourcing, and marketing have reviewed the same facts. The approval file should answer basic questions: What is the exact claim? Where will it appear? What product does it cover? What evidence supports it? Does the claim remain accurate if a supplier changes? Who is responsible for future review? These questions are not glamorous, but neither is explaining a bad label in court.

The deeper lesson from California courts upholding Made in USA law is that trust has economic value. Courts recognize that consumers may pay attention to domestic-origin claims, and regulators understand that honest American manufacturers can be harmed when competitors use patriotic marketing without earning it. A truthful label rewards real domestic investment. A careless label punishes everyone: consumers, competitors, retailers, and eventually the brand itself.

For companies, the best experience-based advice is simple: do not let the smallest words on the package receive the smallest review. “Made in USA” may be only three words, but those words can carry manufacturing history, supplier data, consumer expectations, statutory requirements, and courtroom consequences. Treat them with the same care as pricing, safety claims, environmental claims, and warranty promises. The label is not just marketing. It is a promise.

Conclusion

California courts have made clear that California’s Made in USA law continues to play an important role in consumer protection. The FTC’s federal rule did not erase California’s statute, and businesses selling in the state must consider both frameworks. The safest approach is not to guess, decorate, or rely on patriotic enthusiasm. The safest approach is to substantiate every claim, qualify language when needed, and keep records that can survive scrutiny.

For consumers, the decisions reinforce the idea that origin labels should mean something. For businesses, they are a warning wrapped in red, white, and blue ribbon: if you want to say Made in USA, make sure the facts are built in the USA too.

Editorial note: This article is for general informational and publishing purposes only. It is not legal advice. Businesses should consult qualified counsel before making or revising Made in USA claims.