by Stephanie Pottick, Esq., Pottick Law PC & Protect for Success
To a toy company, saying “Made in USA” could be the deciding factor for consumers when it comes to buying products. After all, there’s been a recent focus on supporting U.S. businesses and workers by buying American-made products. Seeing that label can signify trust and make consumers feel like purchasing that particular product is a patriotic choice.
However, before adding a “Made in USA” label to your product or packaging, it’s important to know whether you’re legally permitted to do so. Otherwise, your company may get into trouble. The Federal Trade Commission (FTC), which is responsible for preventing deception and unfairness in the marketplace, codified the “Made in USA Labeling Rule” in 2021.
Here’s a simplified overview (more detailed information can be found on the FTC website):
- An unqualified “Made in USA” claim means “all or virtually all” of the product must be made in the U.S. So, the components are made and sourced in the U.S., significant processing occurs in the U.S., and final assembly or processing of the product also occurs in the U.S. An unqualified claim is a high bar to meet, especially for toys which typically rely on foreign components, so using a qualified claim may be a safer option.
- You can make a qualified claim when you can’t meet the standards of an unqualified claim. In this case, you’d have to clarify what contents or processes are tied to the U.S. Examples may include “Assembled in U.S. from components sourced in China,” “50% U.S. content,” and so on.
If you’re thinking the standard seems a bit ambiguous, you’re not alone. Since there is no specific benchmark, each product must be determined on a case-by-case basis.
Stephanie Pottick, Esq.
Keep in mind that your claims must be truthful, and you must be able to substantiate them if necessary. Otherwise, you may face legal consequences, such as lawsuits and fines, and risk damaging your company’s reputation. For toy companies, especially, reputation is key because parents not only want to ensure their kids are playing with safe toys, but they also want to make sure those companies are trustworthy.
While the FTC primarily governs any “Made in USA” claims, some states (like California, for example) also have regulations that might apply, so do your homework before making any decisions about labeling.
You should only consider using “Made in USA” labeling after you and your team do a thorough analysis of your toy or product and understand whether it meets the criteria provided by the FTC and other applicable rules.
Remember: Running a business can be challenging to begin with — don’t let the legal stuff blindside you. Engaging professionals with experience in this area can be helpful.
Stay safe and stay legal!
Disclaimer: This article is for informational purposes only and not intended as legal advice. Don’t rely on anything without doing your due diligence first.
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A version of this feature first appeared in the 2026 edition of The BIG Toy Book. Read the full issue here!
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