New California “Made in USA” Labelling Law

Prior to California’s new labelling rule, the state prohibited labelling a product as “Made in USA”, or anything similar, if any part of the underlying product was produced outside the United States.  Only products 100% sourced and manufactured in the United States could be labeled as “Made in USA”.

The Federal Trade Commission’s (FTC) “Made in USA” standard requires that a product to be labeled American made if “all or virtually all” of its components are manufactured domestically and that its final assembly must occur within the United States.

The new California law permits products to be labeled as “Made in USA” or similar labelling claims provided that:

• the foreign components or parts do not constitute more than 5% of the final wholesale value of the product, or
• the foreign components or parts do not constitute more than 10% of the final wholesale value of the product AND the manufacturer demonstrated that those components or parts are unavailable in the United States.

The determination that the components or parts cannot be made, manufactured, produced, or obtained within the United States from a domestic source shall not be based on the cost of the components or parts. The new law also clarified that goods sold or offered for sale outside of California are not mislabeled as long as the labels conform to the law where they are sold or offered for sale.

Throughout our global network of laboratories, we are able to provide a range of services, including analytical testing and consultancy, for restricted substances in consumer products for United States and international markets. Please do not hesitate to contact us for further information.

For enquiries, please contact:

Louann Spirito
Director Technical Support, Softlines
t: +1 973 461 7919

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