Red, White and Sued: The Rise in Made in the USA Lawsuits

Claiming your product is “Made in the USA” has become riskier since we last discussed it in “Red, White, and RISK: How to Safely Claim Your Product is Made in the USA.” A surge in patriotism and increased tariffs have led consumers to seek out more products made in the United States. At the same time, law firms are interpreting Trump’s reelection as a signal to pursue fraudulent “Made in USA” claims more aggressively. Additionally, the Federal Trade Commission (FTC) is warning companies to comply with federal labeling requirements or face potential consequences.

According to Truth in Advertising, the number of class action lawsuits related to “Made in USA” (MUSA) claims has almost doubled since last year, from seven to thirteen–and the year isn’t even over yet!  The Wall Street Journal reports that one law firm in California is responsible for most of these lawsuits. 

Pending Cases

The Kazerouni Law Group has brought ten “Made in USA” class action lawsuits in 2025, on the heels of winning the single one it filed in 2024. These suits included the following against the food and beverage industry and personal care products.  

• Goya Foods is facing allegations that several of its food and beverage items, including its Plantain Chips and Adobo seasoning, are inaccurately labeled as “Product of USA” because they contain ingredients sourced from other countries.
• Mielle Organics, a subsidiary of Procter & Gamble, is facing allegations of misleadingly promoting its Rosemary Mint Scalp & Hair Strengthening Oils as being produced in the USA, despite including ingredients sourced from outside the country.
• PepsiCo and Unilever are accused of misrepresenting their Pure Leaf tea as “Brewed in USA,” although the tea and other ingredients originate from outside the United States, including countries like India, Kenya, Indonesia, and Sri Lanka. 
• McCormick & Co. is accused of misleading consumers by promoting its mustard as “Crafted and Bottled in Springfield, MO, USA” and “American Flavor in a Bottle,” despite the fact that it includes mustard seeds sourced from Canada and other imported ingredients.

Another pending case filed in Minnesota accused Nordic Ware of fraudulent MUSA claims on its bakeware. The company has responded by stating that the core element of its product, aluminum, is no longer available from the US. 

Using tools like Softly’s Green Claim Navigator can help head off lawsuits related to MUSA. This tool offers a comprehensive list of lawsuits and updates concerning products labeled as “Made in the USA,” along with other sustainability claims, to help you anticipate potential lawsuits. 

Settlements are Costly

 Besides hefty payouts, a settlement requires expensive legal fees and can damage your company’s reputation. Several companies have paid large amounts to settle fraudulent MUSA claims. 

• Bigelow Tea paid a $2.36 settlement for its MUSA claim after the finding that its tea leaves come from outside the USA. Although Bigelow said it intended to communicate that only its teabags were made in the US, it has paid the settlement and removed all “Made in the USA” claims from its packaging. 
• Olaplex has settled for $1.35 million for misleading claims that its hair products are made in the USA while using ingredients sourced from outside the country. 
• Ducktrap River of Maine claimed its smoked salmon is sustainably sourced from Maine. The case found that it comes from outside the US, and the company paid a $1.3 million settlement. 

Dismissals are Few

Out of 80 “Made in America” class actions tracked since 2011, only five were dismissed, with no jury ruling in favor of the defendants, according to Truth in Advertising. One notable case, HandiFoil, was dismissed. The plaintiffs failed to demonstrate that the company did not comply with California’s MUSA law. This law requires that if imported elements comprise 10% or more of the product’s value, it cannot claim to be made in the USA. 

For more information and updates on federal, state, and international regulations, check out Softly’s Green Claims Navigator.  

Government Warnings Loom 

The FTC mandates that companies adhere to its Made in USA Labeling Rule, which stipulates that “all or virtually all” components of a product must be manufactured in the U.S. if it is labeled as such.  In July of this year, the FTC sent warning letters to Walmart and Amazon to monitor third-party sellers who appear to be making deceptive “Made in USA” claims on those online marketplaces. It also sent letters to four smaller companies to stop making unsubstantiated MUSA claims. The companies include flagpole retailer Americana Liberty, footwear maker Oak Street Manufacturing, LLC, football equipment company Pro Sports Group LLC, and personal care products manufacturer USA Big Mountain Paper Inc. The letters remind retailers that violations of the FTC Act and the MUSA Labeling Rule may lead to legal action or civil penalties. 

Make Amends 

In today’s global economy, MUSA claims can be complicated by the necessity of sourcing components from around the world. It may not be feasible for your product to be entirely made in the USA. Crafting your claims to reflect the origin of your product accurately can help you avoid legal issues. Additionally, revising your advertisements can reduce the risk of facing legal challenges. 

Some companies learned the hard way. For example, after being hit with a MUSA lawsuit, Dude Wipes changed their wording from “Made in the USA” to “Assembled in the USA.”  Stellantis responded to a TINA warning by discontinuing its “American Born” campaign for Jeep and Ram vehicles. In its warning, TINA.org Executive Director Bonnie Patten stated that Stellantis can highlight its assembly facilities in the U.S. that contribute to job creation and bolster the American economy, but it must not mislead consumers regarding the extent of manufacturing conducted within the country.  

Make sure your wording accurately reflects your claims to help maintain consumer confidence while demonstrating your commitment to making products in the US. Communicating your claims with transparency and honesty can go a long way in maintaining consumer trust. 

Stay out of the Courtroom and Off the Warning Lists

Many companies have loosely used the “Made in USA” claim to take advantage of the growing demand for domestically produced products. However, this claim is subject to strict requirements. With the rapid increase in class action lawsuits against “Made in USA” claims, the potential for legal issues is higher, and the need for transparent claims is more important than ever.

FAQs

1. Are “Made in USA” cases increasing?
   Yes. They have almost doubled since the end of 2024.
2. What government regulations do I need to follow for MUSA claims?
   The FTC’s Made in USA Labeling Rule requires that “all or virtually all” of a product be made in the USA in order to make that claim.
3. Is it too late to make a change?
   No. Review the wording of your claims in marketing campaigns to ensure they accurately reflect the origin of your product.
4. How can I keep up with new legislation and lawsuits?
   Softly’s The Green Claim Navigator can provide you with the tools you need to understand and comply with current regulations and legislation. At Softly, we help brands stay ahead of the constantly changing global landscape by offering tools to analyze regulatory risks, benchmark certifications, and build trust through accuracy.

References

1. Red, White and RISK: How to Safely Claim your Product is Made in the USA – Softly
2. Federal Trade Commission Warns Companies to Comply with “Made in USA” Requirements
3. How Trump Inspired One Law Firm to Blitz Brands With ‘Made in USA’ Challenges – WSJ
4. Atamian et al. v. Olaplex, Inc. et al. 37-2024-00018492, California state court – San Diego
5. Sepian et al. v. Goya Foods, Inc. 25-cv-1512, C.D. Cal.
6. Allen et al. v. Mielle Organics, LLC 25-cv-342, C.D. Cal.
7. Daldalian et al. v. Pepsico, Inc., Conopco, Inc. d/b/a Unilever and Pepsi Lipton Partnership d/b/a Pure Leaf Tea 25-cv-1491, C.D. Cal.
8. McCoy et al. v. McCormick & Co., Inc. 25-cv-231, E.D. Cal.
9. Kaufmann et al. v. Nordic Ware, Inc. 25-cv-1379, D. Minn.
10. Banks et al. v. R.C. Bigelow, Inc. 20-cv-6208, C.D. Cal.
11. Neversink General Store et al v. Mowi USS, LLC et al, Case No. 20-cv-9293, S.D.N.Y.
12. Hood et al. v. Handi-Foil Corp., et al. 24-cv-2373, N.D. Cal.
13. California Code BPC 17533.7. 
14. Federal Register :: Made in USA Labeling Rule
15. Federal Trade Commission Warns Companies to Comply with “Made in USA” Requirements
16. Karter et al. v. Dude Products, Inc. 25-cv-663, S.D. Cal.
17. Stellantis Steers Away from Deceptive Made in USA Claims – TINA

 Information provided is for general purposes only and not legal advice; consult a qualified attorney for personalized guidance. Softly disclaims any liability for actions based on this information.