FTC Urges Amazon, Walmart to Enforce "Made in USA" Label Accuracy

The U.S. Federal Trade Commission (FTC) has called on Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT) to take stronger action against third-party sellers making deceptive "Made in USA" claims on their platforms. In letters sent Tuesday, the FTC cited multiple instances where sellers falsely marketed products as domestically made, urging both retail giants to enforce compliance with federal labeling laws and their internal seller conduct policies.

In addition to Amazon and Walmart, the FTC issued warning letters to four smaller companies—Oak Street Bootmakers (Chicago), Stand Flag Poles (Fort Lauderdale), Pro Sports Pads (Jacksonville), and USA Big Mountain Paper (Jacksonville)—demanding they halt misleading claims unless they can prove their products are "all or virtually all" made in the United States.

FTC Chairman Andrew Ferguson emphasized consumer trust, stating, “Consumers deserve confidence that 'Made in USA' labels reflect genuine American-made products supporting U.S. workers and the economy.” Walmart responded, asserting its “zero tolerance” for noncompliant third-party listings, removing products found in violation. Amazon has yet to comment.

Pro Sports Pads CEO Joshua Baker defended his company, saying it adheres to labeling laws and submitted documentation proving its Pro Gear Custom shoulder pads are manufactured in Jacksonville using domestic materials. Other companies did not immediately respond to media inquiries.

This enforcement push follows the FTC's 2021 implementation of the "Made in USA Labeling Rule," designed to protect consumers and ethical businesses from deceptive marketing. Since then, the FTC has secured $15.8 million in judgments across 11 enforcement cases, including actions against Williams-Sonoma (NYSE:WSM) and Instant Brands, the maker of Pyrex.

The initiative highlights regulators’ growing focus on product labeling transparency and the responsibilities of major online retailers to police their marketplaces.