Podcast Summary: Special Ops with Emma Rainville

Episode: Made in USA or Made in Trouble? What You Missed About FTC Label Laws

Date: August 29, 2025
Guests: Emma Rainville (Host, Shockwave Solutions), Ryan Potita (FTC Expert, Gordon Reese)

Overview

In this episode, Emma Rainville and FTC compliance attorney Ryan Potita dissect the Federal Trade Commission’s (FTC) recent crackdown on “Made in USA” product labeling. Aimed at marketers, ecommerce entrepreneurs, and business leaders, the discussion demystifies the legal standards for origin claims, highlights high-profile enforcement actions against brands (including giants like Amazon and Walmart), and offers actionable steps to avoid million-dollar brand disasters.

Key Discussion Points and Insights

1. Why "Made in the USA" Is Under the Microscope

• The FTC is ramping up enforcement on origin claims, especially during "Made in America Month" (July). (00:55)

• Recent press releases by the FTC chair highlight a mission to bolster trust in American manufacturing and crack down on deceptive origin claims.
  Quote:

  • “We are focusing on Made in USA enforcement terror… More brands are pivoting towards selling American products.” – Ryan (01:10)

• The timing coincides with changing tariffs and increased costs on imported goods, driving brands to capitalize on patriotic branding.

• Unlike in the past, the FTC is "going after everyone"—not just major retailers. (04:25)
  Quote:

  • “It is just a seismic shift in enforcement… It doesn’t matter how big or small you are.” – Ryan (04:35)

2. The Legal Standard: What Counts as "Made in the USA"?

• An “unqualified” Made in USA claim means virtually all components—ingredients, processing, packaging—must originate from the US. The bar is extremely high. (02:09–02:41) Quote:

  • “If you are going to make an unqualified claim, the product and all of its constituent ingredients needs to be all or virtually all from the U.S. All the processing needs to be done here, all the core ingredients... Everything.” – Ryan (02:09)

• Even packaging (like supplement bottles) may need to be US-sourced, depending on consumer perception. (02:41–03:14) Quote:

  • “If it’s on the bottle, I think there’s a reasonable argument that people would believe that the bottle was made there as well.” – Emma (03:04)

• Assembling or heavily processing imported parts in the US usually does not qualify; the product's core components matter most. (03:23–04:12, 07:05–07:56) Memorable Example:

  • Company assembling docks in the US with plastic from China and steel from Canada can’t use “Made in the USA” without qualification.
    Quote:
  • “This product only existed because the core ingredients came from outside.” – Ryan (07:49)

3. How Much Is “Virtually All”? — The Fuzzy Line

• The FTC looks at both cost and importance of foreign components (“virtually all” test)—not just a percentage.
• Using qualifiers (“Molded in the US with foreign components”) may still require a clear disclosure, especially if the imported components are “core” to the product. (07:56–08:46)

4. Consumer Trust Versus Manufacturing Reality

• The US has limited manufacturing capability, making true “Made in USA” claims rare and highly valuable. (08:46–09:06)

• During crises (e.g., COVID-19, KN95 mask shortages), consumer trust in origin claims is heightened.

• Societal tension: Americans value patriotic branding but are reluctant to pay more or work in manufacturing. (09:33–09:56)

  Quips:

  • “Americans don’t want to pay more. They don’t want to work in manufacturing plants … and then we want things that are American made. But that’s a societal problem, not a you and me problem right now.” – Emma (09:40–09:56)

5. Practical Steps: Auditing and Compliance

• Checklist from Emma & Ryan (09:57–12:34):

  1. Audit all marketing & product materials for origin claims.
  2. Only make unqualified “Made in USA” claims if everything is sourced and manufactured in the US.
  3. Obtain and keep documentation and certificates from manufacturers proving origin. (11:03–11:07)
  4. Don’t just trust contracts; verify the supply chain up to raw materials. (11:35–12:14)
  5. Clearly disclose material origin for components, especially if using qualifiers.
  6. Update suppliers and internal marketing compliance guidelines.
  7. Train customer support and marketing teams to avoid accidental violations.

  Quote:

  • “One unchecked Made in the USA label could cost your brand millions. Patriotism is great, but compliance is better. The line between smart marketing and deceptive claims is thinner than you think.” – Emma (13:10)

Notable Quotes & Memorable Moments

• “It’s almost per se unlawful [to use an unqualified Made in USA claim] because so much of the stuff… is coming from overseas.” – Ryan (04:35)
• “Americans don’t want to pay more. They don’t want to work in manufacturing plants… and then we want things that are American made.” – Emma (09:40)
• “You need to be keeping documentation on hand. You want certificates.” – Ryan (11:03)
• “If that documentation looks fake or photocopied… that’s going to put you on notice.” – Ryan (12:15)
• “Patriotism is great, but compliance is better.” – Emma (13:20)

Important Timestamps

• 00:00 – Opening: Why Made in USA claims are now risky
• 01:08 – FTC’s Made in America Month and relevance of tariffs
• 02:09 – What legally qualifies as “Made in USA”
• 03:23 – Evaluating US processing vs. foreign ingredients
• 04:35 – Shift in FTC enforcement: going after all brands
• 07:05 – Real product example: Molded, assembled, but not Made in USA
• 08:52 – Why “Made in the USA” is so rare in practice
• 09:40 – Consumers’ conflicting desires (price, jobs, patriotism)
• 09:58 – Step-by-step compliance checklist
• 11:03 – Importance of documentation and verification
• 13:10 – The cost of non-compliance: “Patriotism is great, but compliance is better.”

Actionable Takeaways

• Audit every claim related to country of origin NOW, especially on product labels and digital assets.
• Documentation is essential—not just contracts but detailed, verifiable certificates from every vendor.
• Qualify all claims if your sourcing isn’t 100% US-based, and disclose foreign inputs clearly.
• Train staff in compliance; front-line marketing and support teams can create huge liabilities with casual language.
• Leverage the free “US Compliance Checklist” from Emma and Ryan at specialopspodcast.com for detailed, practical guidance.

For bonus materials and checklists, visit:
specialopspodcast.com

Hosts:
Emma Rainville, Shockwave Solutions
Ryan Potita, Gordon Reese
End of Episode