By Jonathan Stempel
(Reuters) -The U.S. Federal Trade Commission on Tuesday called on Amazon.com and Walmart to crack down on third-party sellers that make deceptive “Made in USA” claims on the retailing giants’ online marketplaces.
In letters to Amazon and Walmart, the FTC said it learned of several instances where third-party sellers falsely claimed their products were made in the United States.
The FTC urged both companies to take “corrective action” against sellers whose “Made in USA” claims violate federal law and Amazon’s and Walmart’s codes of conduct.
Four smaller retailers also received FTC warning letters demanding they cease “Made in USA” claims unless they prove “all or virtually all” of the products in question are made domestically.
The four retailers are Oak Street Bootmakers in Chicago; Stand Flag Poles in Fort Lauderdale, Florida; football equipment maker Pro Sports Pads in Jacksonville, Florida, and medical products maker USA Big Mountain Paper, also in Jacksonville.
Walmart had no immediate comment. The other five companies did not immediately respond to requests for comment.
“Consumers want to have confidence that when they buy something labeled ‘Made in the USA’ they are actually supporting American workers and the American economy,” FTC Chairman Andrew Ferguson said in a statement.
Many companies have been accused by regulators or in private lawsuits of using imprecise labeling to induce shoppers to pay more, including through appeals to their patriotism.
In 2021, the FTC adopted a “Made in USA Labeling Rule” to protect businesses and consumers.
The agency later brought cases against kitchenware and home furnishings retailer Williams-Sonoma and Pyrex kitchenware maker Instant Brands, and said it obtained $15.8 million of judgments in 11 “Made in USA” enforcement actions between 2021 and 2024.
(Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama )
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