This proposed rule could have major implications on a number of products, including many in the natural products industry.
Attorney Pooja Nair, partner at Ervin Cohen & Jessup LLP explained the “Made in USA” definition.
“So the proposed rule makes it an unfair or deceptive act to make an unqualified claim that a product is made in the USA, made in America, or any variation that means the same thing, unless three different things are true about the product."
Nair explained these three factors are: Final assembly or processing of the product occurs in the United States; all significant processing that goes into the product occurs in the United States; and all or virtually all ingredients or components of the product are made and sourced in the United States.
“The part about the ingredients, is definitely applicable to supplements and natural products because if they source a major ingredient from outside of the country, even if the product ends up being made in the US, it could not be marketed as ‘Made in the US.’”
Nair noted that in an extraordinary turn of events, Commissioners Noah Joshua Phillips and Christine S. Wilson each released dissenting statements stating that broad regulation of both labeling and advertising for Made in USA claims went beyond the scope of the FTC’s authority.
Nair said these statements could lay the groundwork for potential legal challenges the agency could face after the final rule is implemented.
The FTC is accepting comments on this Notice of Proposed Rulemaking through Monday, September 14th.
To hear more about how this case could impact the industry, listen to the NutraCast. You can also subscribe on iTunes, Spotify and Stitcher.
NutraCast is a podcast that focuses on insights from inside the nutrition industry. It is a production by NutraIngredients-USA. Music by Kevin Macleod.
