What “Made in USA” means on a toy box
Three separate things are easy to blur: the FTC's general rule against deceptive origin claims, the narrower 2021 Labeling Rule, and qualified claims such as “Assembled in USA”. Here is each one in the FTC's own words, then what it means when you are holding a box.[1]
1. The standard: “all or virtually all”
Traditionally, the FTC has required that a product advertised as Made in USA be “all or virtually all” made in the U.S.[2]
“All or virtually all” means that the 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. That is, the product should contain no — or negligible — foreign content.[3]
In plain terms: final assembly here, all significant processing here, and no more than negligible foreign content. This is our summary of the FTC's wording, not a ruling on any product.
The FTC Act gives the Commission the power to bring law enforcement actions against false or misleading claims that a product is of U.S. origin.[4]
The Made in USA Policy Statement applies to U.S. origin claims that appear on products and labeling, advertising, and other promotional materials.[5]
This general power, explained in the FTC's 1997 Policy Statement, applies to origin claims anywhere: boxes, ads, websites and social posts.[6]
2. The 2021 Labeling Rule (16 CFR Part 323)
In August 2021, the FTC finalized the Made in USA Labeling Rule , (the Labeling Rule), available at 16 C.F.R. Part 323. The Labeling Rule codified the “all or virtually all” standard for labels on products.[1]
Marketers are now subject to civil penalties if they use an unqualified Made in USA label on a product that is not “all or virtually all” made in the U.S., including in catalogs or online.[7]
The Labeling Rule applies to labels on products that make unqualified Made in USA claims. It also applies to any online or other mail order marketing materials that include a seal, mark, tag, or stamp labeling a product Made in USA.[8]
What the rule added was money: civil penalties for an unqualified Made in USA label that fails the standard, including labels and seals shown online or in catalogs. The FTC's legal library dates the Federal Register notice July 14, 2021. The rule doesn't replace the general standard above; claims outside its scope are still judged under it.[9][10]
This publication is the FTC staff’s view of the law’s requirements. It is not binding on the Commission.[11]
3. Qualified claims
In this context, an “unqualified” claim is a claim without conditions or caveats. A “qualified” claim is a claim with limitations or other explanations.[12]
Examples of qualified Made in USA claims include “60% U.S. content,” “Made in USA of U.S. and imported parts,” and “Couch assembled in USA from Italian Leather and Mexican Frame.”[13]
Because even qualified claims may imply more domestic content than was actually used to manufacture the product, exercise care when making these claims.[14]
A qualified Made in USA claim, like an unqualified claim, must be truthful and substantiated.[15]
A qualified Made in USA claim describes the extent, amount or type of a product’s domestic content or processing. It indicates that the product isn’t entirely of domestic origin.[16]
You will see qualified claims on real toys. Step2's kitchen page says “Made in the USA with US and imported parts”; Little Tikes publishes a label that reads “Made in U.S.A. with US and Global Components”. In the FTC's words, a qualified claim indicates the product isn't entirely of domestic origin, and the company still has to be able to back it up. A claim about one process, such as assembly, is covered in the next section: it doesn't by itself tell you where the components were made.[17][18][16][15]
4. “Assembled in USA”
A product that includes foreign components may be called “Assembled in USA” without qualification when its principal assembly takes place in the U.S. and the assembly is substantial.[19]
For the “assembly” claim to be valid, the product’s last “substantial transformation” also should have occurred in the U.S.[20]
That’s why a simple “screwdriver” assembly in the U.S. of foreign components into a final product at the end of the manufacturing process doesn’t usually qualify for the “Assembled in USA” claim.[21]
“Assembled in USA” is not a weaker spelling of “Made in USA”. Under the FTC guide, the principal assembly must take place here and be substantial, and the product's last substantial transformation should also happen here. The claim permits foreign components, and doesn't by itself tell you where the components were made.
5. “Designed in USA”, “Created in USA” and other process words
It labels the product “Designed in USA — Made in Finland.” Such a specific processing claim would not lead a reasonable consumer to believe that the whole product was made in the U.S.[22]
Example: A company advertises its product, which was invented in Seattle and manufactured in Bangladesh, as “Created in USA.” This claim is deceptive because consumers are likely to interpret the term “Created” as Made in USA — an unqualified U.S. origin claim.[23]
A claim about one step (designed, printed, carved) should name that step and, when the product was made abroad, say where. Vague words like “created” can count as a full Made in USA claim.
6. What a box can say without making a claim, and what doesn't prove one
Similarly, the FTC is not likely to interpret the mere listing of a company’s U.S. address on a package label in a non-prominent way as a claim of U.S. origin or as a Made in USA label.[24]
Ordinarily, the FTC will not consider a manufacturer or marketer’s use of an American brand name or trademark by itself as a U.S. origin claim.[25]
Depending on the context, U.S. symbols or geographic references (for example, U.S. flags, outlines of U.S. maps, or references to U.S. locations of headquarters or factories) may convey a claim of U.S. origin either by themselves, or in conjunction with other phrases or images.[26]
A US address, an American-sounding brand or a flag is not proof of where a toy was made. A small address line usually isn't a claim at all; a flag or a factory photo may be one. Either way, none of them tells you the toy meets “all or virtually all”. Look for an origin statement about the product itself.
7. Product lines: when a brand makes some toys here and some abroad
Manufacturers and marketers should not indicate, either expressly or implicitly, that a whole product line is of U.S. origin (“Our products are made in USA”) when only some products in the product line are made in the U.S. according to the “all or virtually all” standard.[27]
This is the most common trap with toys. Several makers in our directory say, on their own sites, that they make some products abroad or use some imported parts. Their maker pages say which, as far as the maker does.[28][29][30][31]
Green Toys · Step2 · Buffalo Games · Vermont Teddy Bear · Springbok · Bannor Toys
8. The FTC's own toy example
Example: A plastic toy that is poured, molded, and assembled in Mexico out of U.S.-made plastic resin is shipped to the U.S. CBP requires the toy to be marked “Made in Mexico” because that’s where the toy was last “substantially transformed.”[32]
US materials don't make a toy US-made. Where the toy was last substantially transformed, molded and assembled in this example, decides its country of origin for customs, and the FTC looks at the whole product for a Made in USA claim.[33]
9. Origin is not a safety rating
made ASTM F963 a mandatory consumer product safety standard for children’s toys.[34]
requires manufacturers and importers of children’s products subject to a regulation, standard, or ban enforced by the CPSC to certify that those products meet the requirements of the standard[35]
The same federal toy standard applies to toys made here and abroad, and importers carry the same duty as manufacturers to issue a Children's Product Certificate. Where a toy was made tells you about jobs, materials and supply chains; it doesn't tell you a toy passed or failed anything. We make no safety claims about any product.
10. Who checks a Made in USA claim?
A company doesn’t need approval from the FTC before making a Made in USA claim and the FTC doesn’t pre-approve advertising or labeling claims.[36]
This means a manufacturer or marketer needs competent and reliable evidence to back up the claim that its product is “all or virtually all” made in the U.S.[37]
Companies have an ongoing obligation to review their claims and substantiation to make sure they remain accurate.[38]
The FTC doesn't pre-approve these claims, and we don't approve or vouch for them either: we quote what makers say and date it. If you think a claim is false, the FTC takes reports.[36][39]
If you suspect noncompliance, report it to the FTC at ReportFraud.ftc.gov or send an email to MUSA@ftc.gov .[39]
How to read a toy box: a checklist
- Find a statement about the product, not the company: “Made in USA”, “Made in the USA with US and imported parts”, “Assembled in USA”, or a foreign country.
- Read the qualifier. “With imported parts” and “of US and global components” disclose foreign content. “Assembled in USA” describes assembly and doesn't establish where the components were made.
- Don't treat a flag, an address or a brand name as proof of US manufacture. Symbols and place references can imply an origin claim; look for product-specific wording and its qualifiers.
- If the brand makes some toys abroad, check this toy, not the brand. Our maker pages say which lines the maker describes.
- Online, use the maker's own product page. A store listing may not carry the maker's origin line.
- Follow the age grading on the box separately; origin and age are different questions.
Sources
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In August 2021, the FTC finalized the Made in USA Labeling Rule , (the Labeling Rule), available at 16 C.F.R. Part 323. The Labeling Rule codified the “all or virtually all” standard for labels on products.
Traditionally, the FTC has required that a product advertised as Made in USA be “all or virtually all” made in the U.S.
“All or virtually all” means that the 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. That is, the product should contain no — or negligible — foreign content.
The FTC Act gives the Commission the power to bring law enforcement actions against false or misleading claims that a product is of U.S. origin.
The Made in USA Policy Statement applies to U.S. origin claims that appear on products and labeling, advertising, and other promotional materials.
In 1997, following consumer research and public comments, the FTC published an Enforcement Policy Statement on U.S. Origin Claims (the Made in USA Policy Statement)
Marketers are now subject to civil penalties if they use an unqualified Made in USA label on a product that is not “all or virtually all” made in the U.S., including in catalogs or online.
The Labeling Rule applies to labels on products that make unqualified Made in USA claims. It also applies to any online or other mail order marketing materials that include a seal, mark, tag, or stamp labeling a product Made in USA.
Date July 14, 2021
Under the rule, marketers making unqualified Made in USA claims on labels should be able to prove that their products are “all or virtually all” made in the United States.
This publication is the FTC staff’s view of the law’s requirements. It is not binding on the Commission.
In this context, an “unqualified” claim is a claim without conditions or caveats. A “qualified” claim is a claim with limitations or other explanations.
Examples of qualified Made in USA claims include “60% U.S. content,” “Made in USA of U.S. and imported parts,” and “Couch assembled in USA from Italian Leather and Mexican Frame.”
Because even qualified claims may imply more domestic content than was actually used to manufacture the product, exercise care when making these claims.
A qualified Made in USA claim, like an unqualified claim, must be truthful and substantiated.
A qualified Made in USA claim describes the extent, amount or type of a product’s domestic content or processing. It indicates that the product isn’t entirely of domestic origin.
Made in the USA with US and imported parts.
Made in U.S.A. with US and Global Components
A product that includes foreign components may be called “Assembled in USA” without qualification when its principal assembly takes place in the U.S. and the assembly is substantial.
For the “assembly” claim to be valid, the product’s last “substantial transformation” also should have occurred in the U.S.
That’s why a simple “screwdriver” assembly in the U.S. of foreign components into a final product at the end of the manufacturing process doesn’t usually qualify for the “Assembled in USA” claim.
It labels the product “Designed in USA — Made in Finland.” Such a specific processing claim would not lead a reasonable consumer to believe that the whole product was made in the U.S.
Example: A company advertises its product, which was invented in Seattle and manufactured in Bangladesh, as “Created in USA.” This claim is deceptive because consumers are likely to interpret the term “Created” as Made in USA — an unqualified U.S. origin claim.
Similarly, the FTC is not likely to interpret the mere listing of a company’s U.S. address on a package label in a non-prominent way as a claim of U.S. origin or as a Made in USA label.
Ordinarily, the FTC will not consider a manufacturer or marketer’s use of an American brand name or trademark by itself as a U.S. origin claim.
Depending on the context, U.S. symbols or geographic references (for example, U.S. flags, outlines of U.S. maps, or references to U.S. locations of headquarters or factories) may convey a claim of U.S. origin either by themselves, or in conjunction with other phrases or images.
Manufacturers and marketers should not indicate, either expressly or implicitly, that a whole product line is of U.S. origin (“Our products are made in USA”) when only some products in the product line are made in the U.S. according to the “all or virtually all” standard.
While we began manufacturing exclusively in the USA, today, we responsibly produce our toys in carefully selected facilities both domestically and abroad.
We do import some products and components from other countries.
Buffalo, NY is now the premier manufacturing facility for jigsaw puzzles and games in North America, and while much of our production is done there, we have expanded some production into world-class facilities in China
our hybrid Bears, like our Lil, Big, and Giant Hunka Love Bears, begin their life by being cut and partially sewn in China, and then they travel back to our factory where they are lovingly stuffed and finished right here in VT, USA.
Example: A plastic toy that is poured, molded, and assembled in Mexico out of U.S.-made plastic resin is shipped to the U.S. CBP requires the toy to be marked “Made in Mexico” because that’s where the toy was last “substantially transformed.”
It also offers some general information about the U.S. Customs and Border Protection’s (CBP) requirement that all products of foreign origin imported into the U.S. be marked with the name of the country of origin.
made ASTM F963 a mandatory consumer product safety standard for children’s toys.
requires manufacturers and importers of children’s products subject to a regulation, standard, or ban enforced by the CPSC to certify that those products meet the requirements of the standard
A company doesn’t need approval from the FTC before making a Made in USA claim and the FTC doesn’t pre-approve advertising or labeling claims.
This means a manufacturer or marketer needs competent and reliable evidence to back up the claim that its product is “all or virtually all” made in the U.S.
Companies have an ongoing obligation to review their claims and substantiation to make sure they remain accurate.
If you suspect noncompliance, report it to the FTC at ReportFraud.ftc.gov or send an email to MUSA@ftc.gov .