East Lansing, Michigan, August 19, 2025
News Summary
A study from Michigan State University reveals that many consumers mistakenly believe ‘Made in USA’ products are primarily manufactured domestically. The research, published in the Journal of Law, Business and Ethics, shows confusion arises from supply chains involving foreign components. Regulations by the FTC allow ambiguity in labeling, as products can be labeled ‘Made in USA’ even with foreign parts. The study emphasizes the need for better consumer awareness and clearer regulations to enhance transparency in advertising.
East Lansing, Michigan – A new study from Michigan State University’s College of Communication Arts and Sciences reveals significant confusion among consumers regarding the implications of products labeled as “Made in USA.” Many shoppers operate under the assumption that these items are primarily manufactured within the United States, when in fact, this may not always be the case.
The research highlights that supply chains for products often involve components manufactured in various foreign countries. For instance, a car may be assembled in the U.S. but contain electronics sourced from Japan and parts from Mexico and Canada. Current Federal Trade Commission (FTC) guidelines stipulate that a product can display a “Made in USA” label if its final assembly occurs in the U.S. and if a substantial portion of the manufacturing costs are incurred within the country.
This ambiguity can lead to misunderstandings among consumers, as the “Made in America” branding does not always align with their expectations regarding domestic production. The study published in the Journal of Law, Business and Ethics is one of only two peer-reviewed works that explore consumer attitudes, perceptions, and behaviors pertaining to “Made in USA” claims.
Lead author of the study indicated that the existing laws may not fully capture consumer perceptions, leaving room for misinterpretation. This is particularly pertinent because businesses use voluntary country of origin claims to appeal to consumer perceptions, while these claims are regulated by the FTC.
Companies can classify their products as “Made in USA” if “all or virtually all” components are sourced from within the country. However, the term “virtually all” leads to varied interpretations. The study found about one-third of survey participants expected more from “Made in USA” labels than what was actually delivered, while over fifty percent felt that their expectations were surpassed by the reality.
Researchers also stressed the need for increased awareness, as consumer understanding of the “Made in USA” label remains murky. This confusion calls for significant consumer perception research that could help guide public policy pertaining to advertising regulations. A potential rise in FTC regulatory scrutiny on “Made in USA” claims may reflect either an increase in deceptive practices or enhanced regulatory oversight.
Additionally, researchers emphasized the necessity for further studies to clarify consumer perceptions regarding these labels, which would, in turn, influence the formulation of more effective laws and policies.
Key Findings from the Study
- Many consumers assume “Made in USA” indicates products are primarily made domestically.
- Supply chains often include components from various foreign countries.
- About one-third of survey participants felt misled by “Made in USA” labels.
- Over fifty percent of participants felt the reality of products surpassed their expectations.
- The existing regulations may not align with consumer perceptions.
- There is a critical need for further studies to inform advertising regulations.
Background Context
The distinctions around “Made in USA” claims are significant, as they impact consumer trust and purchasing decisions. The FTC regulations, while aimed at protecting consumers from deception, leave room for firms to interpret and utilize these claims in ways that may not fully represent the manufacturing processes behind their products. This complexity is exacerbated by global supply chains that intertwine domestic assembly with foreign components, contributing to the confusion felt by many consumers.
Conclusion
As consumer awareness of the implications behind “Made in USA” claims evolves, it is vital for both consumers and policymakers to understand the landscape of domestic production accurately. The recent study sheds light on essential areas for improvement in transparency and regulation that could ultimately enhance consumer protection.
Frequently Asked Questions
What does “Made in USA” mean?
“Made in USA” typically indicates that the final assembly of a product occurred in the United States and that a significant portion of manufacturing costs were incurred domestically. However, it does not guarantee that all components are sourced from the U.S.
Are there regulations governing “Made in USA” claims?
Yes, the Federal Trade Commission (FTC) regulates “Made in USA” claims. However, the guidelines allow for some ambiguity, as products can qualify even if they include components produced internationally.
How can consumers better understand the implications of “Made in USA” labels?
Consumers should seek more information about the supply chains of products they are interested in and be aware that “Made in USA” claims do not always reflect full domestic manufacturing.
Why is it important to clarify consumer perceptions regarding these labels?
Clarifying consumer perceptions is crucial for informing public policy on advertising regulations and ensuring that consumers are not misled when making purchasing decisions.
Deeper Dive: News & Info About This Topic
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Additional Resources
- Newswise: MSU Study on “Made in USA” Claims
- The Guardian: Kamala Harris and Michigan Arab Muslim Americans
- Detroit Free Press: DOJ and Sanctuary Jurisdictions
- Lansing State Journal: Aaliyah Nye WNBA Draft
- Michigan’s Thumb: USA Softball Send-Off
- Wikipedia: Made in the United States
- Google Search: Made in USA label
- Google Scholar: Made in USA claims
- Encyclopedia Britannica: Made in the USA
- Google News: Made in USA
Author: STAFF HERE NOVI WRITER
The NOVI STAFF WRITER represents the experienced team at HERENovi.com, your go-to source for actionable local news and information in Novi, Oakland County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Motor City Comic Con, Michigan State Fair, and Novi Home and Garden Show. Our coverage extends to key organizations like the Novi Chamber of Commerce and Novi Community Foundation, plus leading businesses in automotive, technology, and manufacturing that power the local economy such as Gentherm, Stoneridge, and Daifuku North America. As part of the broader HERE network, including HEREDetroitMI.com, HEREGrandRapids.com, HERENorthville.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
