FTC Warns Amazon, Walmart To Crack Down On Sellers Misusing 'Made In USA' Label

The Federal Trade Commission has written to Amazon (AMZN) and Walmart (WMT) to crack down on sellers who deceptively use the "Made in USA" label on their products sold on the two companies' online platforms.

The FTC said that it had noted several instances of sellers falsely claiming their products were made in the U.S. and urged both companies to take corrective action, according to a Reuters report.

The move comes as part of President Donald Trump’s broader effort to bring manufacturing back to the U.S., with policies like increased tariffs on several countries aimed at advancing that objective.

According to the report, four smaller retailers also received the FTC warning letter, demanding that they remove the "Made in USA" label unless they can demonstrate to the authorities that all of their products are made locally.

The four retailers are Oak Street Bootmakers in Chicago; Stand Flag Poles in Fort Lauderdale, Florida; Pro Sports Pads, a football equipment maker in Jacksonville, Florida; and USA Big Mountain Paper, a medical products maker also in Jacksonville.

On Stocktwits, the retail sentiment was ‘bullish’ for Amazon and ‘neutral’ for Walmart heading into Wednesday’s market open.

Walmart told Reuters that it identified and removed the products it found to violate the rule.

In 2021, the FTC implemented the "Made in USA Labeling Rule" to safeguard both consumers and businesses. Since then, the agency has taken action against companies such as Williams-Sonoma (WSM) and Instant Brands for violating the rule.

For updates and corrections, email newsroom[at]stocktwits[dot]com.