FTC cracks down on abuse of "Made in the USA" labels: impact on Shopee sellers and compliance

The US Federal Trade Commission (FTC) recently issued a clear warning, requiring Shopee Sellers to meet strict standards before using the "Made in the USA" (Shopee Sellers) label, otherwise they will face heavy fines. This new rule directly affects US sellers on platforms such as Shopee, Amazon, and eBay, especially cross-border merchants involved in localized marketing strategies.

1. Core requirements of the FTC's new rules

(1) Shopee Sellers label usage standards

100% Made in the USA: All important components and production processes must be completed in the United States.

"Almost all" made in the USA (Shopee Sellers have flexible interpretation):

Raw materials, labor, and core technologies mainly come from the United States

Only a very small proportion (such as non-core components such as packaging and screws) can be imported

(2) Penalties for Shopee Sellers' violations

First violation: Up to $43,280 per violation

Repeated violations: May face higher civil penalties or legal proceedings

(3) Shopee Sellers applicable objects

US domestic companies: including manufacturers and brand owners

Cross-border e-commerce sellers: such as foreign sellers who sell on the Shopee Sellers US site and mark "Made in the USA"

2. Impact on Shopee Sellers' US site sellers

(1) Shopee Sellers' compliance risks increase

Chinese/Southeast Asian sellers: If the product is produced in China but marked "Made in the USA", it will directly violate FTC regulations.

Assembled products: Even if some parts are purchased in the United States, if the core components (such as electronic product chips) are imported, they still do not meet the standards.

(2) Adjustment of Shopee Sellers’ marketing strategies

Prohibit vague statements: For example, if the product is “Designed in the USA” but made in China, the origin must still be clearly marked.

Alternative solution: “Assembled in the USA” can be used instead, but the main assembly process must be completed in the United States.

(3) Changes in the competitive landscape of Shopee Sellers

Benefits for genuine American sellers: Brands that use the “Made in the USA” label in compliance with the regulations may gain a premium advantage.

Increased costs for cross-border sellers: If they need to meet the standards, they may need to transfer part of their production to the United States, which will increase their operating costs.

3. Shopee Sellers’ response strategies

(1) Shopee Sellers should immediately check product labels

Remove all products that do not meet the “100% Made in the USA” standard but are marked “Made in the USA”.

Check product detail pages, packaging, and advertising copy to avoid misleading descriptions.

(2) Shopee Sellers adjust product descriptions and certifications

Clearly mark the true origin: such as "Made in China" or "Assembled in USA with global materials".

Apply for third-party certification: such as "Federal Trade Commission Compliant" (must comply with FTC standards).

(3) Shopee Sellers supply chain optimization (long-term)

Consider local production in the United States: If the target customers are sensitive to "Made in the USA", you can explore small-scale local OEM.

Take advantage of free trade agreements: For example, production in Mexico (USMCA agreement) may have more tariff advantages than direct mail from China.

4. Shopee Sellers FTC enforcement case reference

2024 case: A home furnishing brand was fined $250,000 for marking "Made in USA" but 80% of the components came from China.

2023 case: A tool manufacturer was ordered to refund $250,000 to consumers for false advertising of "Made in the USA".

Conclusion: Compliance first, avoid high fines

The FTC's crackdown shows that the US government's supervision of "Made in China" labels is becoming stricter. Shopee Sellers in the US should:

Immediately review existing product labels to ensure compliance with FTC standards;

Adjust marketing language to avoid false or misleading propaganda;

Plan the supply chain in the long term to balance costs and compliance needs.