Written on: September 1, 2024 by Nicholas Georges
The aerosol products industry [sees] … more than 90%i of aerosol products manufactured and sold in the U.S. However, manufacturing an aerosol product in a U.S. facility is not enough to justify an unqualified claim of “Made in USA.”
In 2021, the U.S. Federal Trade Commission (FTC), which prevents unfairness in the marketplace and investigates claims that can deceive consumers, finalized the Made in USA Labeling Rule,ii which requires that products with a “Made in USA” claim be “all or virtually all” made in the U.S. However, the law doesn’t explain in detail what this means for companies from a practical standpoint.
In July of this year, the FTC published an updated version of its Complying with the Made in USA Standard guidance document.iii The document provides the staff’s view of the law’s requirements and is not binding to the FTC. According to the guidance, to satisfy the “all or virtually all” standard, the final manufacturing must take place in the U.S., all significant processing that goes into the product must occur in the U.S. and all or virtually all ingredients or components of the product must be made and sourced in the U.S.
The FTC cautions companies from relying solely on their suppliers to provide information about the domestic content of ingredients, packaging and other product elements. In other words, companies should do their due diligence and request specific information and/or documentation from their suppliers before citing a “Made in USA” claim.
If a company cannot meet the “all or virtually all” standard, they can make a qualified “Made in USA” claim, which discloses that a product is not entirely of U.S. origin. Examples of qualified claims include “60% U.S. content” and “Made in USA of domestic and imported parts.”
Any product claim must be clear and there must be no implication that the product is made of more domestic parts than it actually is. This includes online and other forms of marketing beyond the product label.
The guidance document also addresses imported products and the requirement for a product to identify its country of origin, which is important because a number of companies manufacture aerosol products outside the U.S.
Additionally, U.S. Customs & Border Protection defines the country of origin as the last country in which “substantial transformation” occurs. “Substantial transformation” is a manufacturing process that results in a new and different product—including name, character and use—than what previously existed. U.S. Customs & Border Protection has its own guidance that addresses country of origin claims in more detail.iv
For more information on country of origin claims or the aerosol industry in general, please contact me at ngeorges@thehcpa.org. SPRAY
i Based upon 2001–2019 Consumer Specialty Products Association (CSPA) and Household & Commercial Products Association (HCPA) Aerosol Pressurized Products Survey.
ii 16 CFR Part 323
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