A (1:58)

You can say manufactured in the US but you couldn't say made in the US So talk to me about like what the guidelines are. What specifically needs to happen in order to be able to make that claim.

B (2:09)

So if you're going to make an unqualified Made in the usa. Yes, even manufactured in the usa. Like we'll get into that in a minute. But if you are going to make an unqualified claim, it need the product and all of its constituent ingredients needs to be all or virtually all from the U.S. so all the processing needs to be done here in the US all the core ingredients that go into the product need to be from the US grown or created Everything. So it is the highest standard you could meet. Everything needs to come from the U.S.

A (2:41)

Here'S a fun one. The bottle that your manufacturer puts your supplements in, you need to make sure that that is also from the US I say that's the packaging, right?

B (2:53)

I'd say that's a little debatable. So I, I mean that also goes to a larger point. I mean, you also need to be clear about what your claim is speaking to, right? Are you actually speaking to everything, like including the bottle?

A (3:04)

Because Made in the US because we were talking about green claims on the freaking bottle, right? If it's on the bottle, I think that there's a reasonable argument that people would believe that the bottle was made there as well.

B (3:14)

I, I will agree with you. I've argued the other side of it.

A (3:18)

But depending on who gets served.

B (3:23)

But getting to the product itself, I mean, all the core ingredients need to be coming from there. And you will get into this debate about whether or not, okay, so if all the raw materials are coming from overseas, but there's a lot of processing going on in here in the US does it become basically a new product when you put all these things together? I mean, the short answer is probably no. I mean really, if, if all the key components are coming from outside, but you're putting it together here in the US it's going to be an incredibly high bar. I mean, especially if those ingredients, like a dietary supplement, right? The value in that product is the individual, individual ingredients that are being put together. And so if the value is coming from ingredients outside and you're putting it together here, it doesn't really matter how much, you know, processing or how expensive it is to put it together here. You know, the core value and the importance of those individual ingredients are going to reign spring.

A (4:12)

So I'd love to know your take on why you think the FTC is like for them to target Walmart and Amazon. Why are they going so hard on this, you think?

B (4:25)

I think it's not just big retailers.

A (4:27)

No, we know that it's not just big retailers, but it's not that usual that you see them going after big retailers.

B (4:35)

I think it is just a seismic shift in enforcement. It is. We are going after everyone and, and we're, it doesn't matter how big or small you are. And it's also just low hanging fruit because I mean, there is a simple, compliant way to fix all of this. Don't use an unqualified claim. I mean, if you're going to say made in the usa, I Mean, it's almost per se unlawful because so much of the stuff, especially in the economy that we live in, is coming from overseas. So it makes it really easy. Like there's no way that that stuff came from all the plastic that you're using to make whatever is definitely coming from China.

A (5:12)

Right.

B (5:12)

And all the steel that you're putting into this product is coming from Canada. Like it's just, some of it's just low hanging fruit.

A (5:18)

Right.

B (5:19)

And given that, you know, they can.

A (5:21)

Make a bunch of money.

B (5:21)

Well, there's a bunch of money. But also, you know, the current administration is much more protectionistic of the U.S. economy. And so as the chair just said that it's, you know, on the, on the verge of July 4th, that it's Made in America or Made in USA enforcement month, there is a focus on protecting American manufacturing. And when that, you know, made in America seal goes on something consumers need to be able to have confidence that it's not some marketing gamut.

A (5:49)

So let's dive back for just a moment. Talk to me about how do I audit my products. And you used a word that everybody that has any split between US raw ingredients or materials and non US are going to hang on to. And that's virtually all. How much can be outside of the US before it's not US made in the USA anymore.

B (6:19)

Hey everyone, interrupting this podcast to remind everybody to like and subscribe our podcast and to sign up for the visionary.

A (6:25)

Vault at www.specialopspodcast.com for a whole bunch of freebies.

B (6:31)

So there are a couple of ways to look at it. Sometimes it's cost, sometimes it's importance. I like using the dietary supplement one for example. Actually here's a better example. There was a company that was making docks. Not docks, it was like a, it was for transportation and what vehicles would pull up to and all the, all the molding, everything that was, you know, done everything to make that, the molds, the molds, every.

A (7:05)

I don't think people would think of that.

B (7:06)

Well, yeah, I mean it was everything to make the product. The product, what it ultimately was. But the plastic came from China or somewhere else. And then the kind of, the fastening, the steel actually came from, I believe it was in the US and then there was another component that came from, I believe it was Canada. But like there was a ton of time and effort and cost that was sunk into building this product here in the U.S. but the problem is like the core ingredients, what made the product, the product came from overseas. And so describing that product as Made using an unqualified claim to describe this as being made in the usa. Despite. Despite the number of jobs that were created, the manpower that went in it, like, it's still, yeah, it's made in America. Well, it's assembled here in the US and it might even be molded here in the US but this product only existed because the core ingredients came from outside.

A (7:56)

So you could put molded in the.

B (7:58)

U.S. molded in the U.S. with it. But so when we start using words other than made, that's going to be kind of the key to say, I'm going to need some sort of caveat or disclosure or qualification. It's like, so you're molding it in the U.S. i think consumers be like, okay, well that. That's synonymous with made or manufactured or something. You're going to need a qualifier there. And you're going to need to say, well, okay, it's mold in the US with what foreign ingredients. I mean, and you can even say made from Canadian, molded in the US From Canadian steel, Canadian or something. But you having some sort of qualification that consumers unnoticed. It's like, hey, a lot of time and effort went into building this here in the US but it's not entirely sourced from US Ingredients or US Component parts.

A (8:46)

It's really hard to get anything that's fully made in the US because of the state of our manufacturing here.

B (8:52)

And that's precisely the point. So when that made in the USA label goes on something, consumers need to be able to trust it and know that it's almost exclusively like 99.999999% coming from the U.S.

A (9:06)

That'S a tough one. That's really tough.

B (9:08)

Well, think about during COVID right, when people were looking for KN95 masks, and then all the, like, fake masks that weren't can 95 were getting brought in, and then people were actively searching for KN95 masks that were made here in Alabama, you know, with American ingredients and things like that. I mean, like, consumers want that, and when they buy a product, it's a material to their purchasing.

A (9:31)

But Americans don't want to work.

B (9:33)

Well, that's a different policy issue.

A (9:35)

I'm just saying.

B (9:36)

Okay, well, Americans also don't want to pay more either, right?

A (9:40)

They don't want to pay more. They don't want to work in manufacturing plants. They don't want to work in the conditions that it takes to manufacture things. And then we want things that are American made. But that's a societal problem, not a you and me problem right now. Just thought I'D throw that out there, but.

B (9:56)

Awesome.

A (9:57)

So I'm going to go over our checklist.

B (9:58)

Let's do it.

A (9:59)

Yeah. So number one, audit all marketing and product materials for origin claims immediately. Make sure if you are saying made in the usa, every single one of your components to that product are coming from US manufacturers. Would you go so far, would you.

B (10:19)

Go so far as getting like, how do you prove it?

A (10:21)

Right? Yeah, like, how do you truly prove that? Additionally.

B (10:25)

Well, you're.

A (10:26)

Additionally. Am I at fault when I am snowed. Do you understand what I'm saying? Like, we, we worked on a product many years ago where the I think was yohimite bark we thought was actually coming from Brazil because the whole claim was that it was Brazilian yohim bark in the copy and we found out it was coming from China and also had Viagra in it. This was a nightmare. But it was not. I. How could I have possibly known that my manufacturer was getting it to someone who was lying to them? Like, how do you prove that the stuff came from where you say it comes from?

B (11:03)

You need to be keeping documentation on hand. You want certificate.

A (11:07)

But I don't, I don't generally. So I just want to go back to like. Because direct response marketers, particularly let's say the supplement industry, they're not going and sourcing their own ingredients. Someone else's.

B (11:18)

Well, no, so.

A (11:19)

And that someone else is not going to give them access, I'm just saying, to where they've sauced, sourced, sauced, sauced, sourced the raw ingredients because that cuts out they're the need for them. So what do I do as they.

B (11:35)

Have to get it?

A (11:35)

Okay.

B (11:36)

I mean that's the only one they.

A (11:38)

Can'T just get it from. Yeah, it's not sourced it.

B (11:40)

It's not enough to just have a contract. Right. And then you're going to take everybody at face value. I mean they're going to have to go down that chain and you know, I've worked with enough clients to where you can go down that chain and if it's in direct response, I mean it didn't even. In direct response, you can go down that chain and you need to verify like just trusting them is not going to be, be able to work or is not going to.

A (11:59)

If I have a contract with my manufacturer, I should be able to trust.

B (12:02)

The fact that, well, you're going to.

A (12:03)

Need.

B (12:05)

Documentation from the manufacturer demonstrating that where they're sourcing the product from is.

A (12:10)

But that was my point. I can get it from the manufacturer. I don't have to go to each individual company.

B (12:14)

No, the manufacturer.

A (12:15)

The raws.

B (12:16)

Correct. The manufacturer should be able to provide this documentation to you. And if that documentation looks fake or photocopied or something like that, I mean, that's going to put you on notice. Be like, there's something at least fishy here.

A (12:25)

I mean, with. I know I can make anything look pretty official.

B (12:29)

Well, but regulators are going to. Yeah, because the default position is, well, why did you trust that?

A (12:34)

So audit all your marketing and product materials for origin claims and make sure if you're making them, that they're true or remove them and make them true. Verify product sourcing and get documentation ensuring compliance at the manufacturing level. It sounds like. Clearly disclose important materials when necessary. Update your suppliers and marketing compliance guidelines. And I say this all the time, train your customer support and marketing teams on FTC compliance on this issue so that they're not making claims that are going to get you into trouble. One unchecked Made in the USA label could cost your brand millions. Trust me, patriotism is great, but compliance is better. The line between smart marketing and deceptive claims is thinner than you think. Make sure your brand stays on the right side of the ftc. You can get our US Compliance checklist now to protect your business at our Visionary Vault. If you're not signed up for the Visionary Vault, you can sign up for free@specialopspodcast.com and again, it's free. We have lots of tools, checklists, ebooks, templates, all kinds of stuff in there for you. Done by Ryan and I. Done by me and done by the Shockwave team. There's lots of free stuff in there. We never try and sell you anything and once, as always, again, subscribe, like do all the things so that we can keep showing up in your notifications. Thanks so much, Ryan.

B (14:08)

Thanks, Emma.