The FTC Rains on Amazon’s Prime Day Parade with “Made in USA” Warning

The Federal Trade Commission called on Walmart to crack down on its third-party vendors’ false Made in USA claims as well.

Prime Day (now extended to a four-day period of shopping mania) is in full swing, and limited time deals are ticking away. But before the Amazon’s sales clock zeroes out at midnight this Friday, influencers are hawking everything from socks to inflatable kayaks, and the e-commerce platform is a jungle of stuff you really don’t need. But markdowns are hard to resist, right?

Not everyone is thrilled by the discounts though.

In a letter sent on the same day Amazon launched its biannual sale, the Federal Trade Commission (FTC) called on the e-commerce giant to put a stop to false “Made in USA” claims on its website. The national consumer protection agency warned Amazon that the Made in USA Labeling Rule mandates that any products advertised as “Made in the USA” must be “all or virtually all” made in the United States, yet the FTC has received reports that the retail giant’s third-party vendors have flouted this law.  

And the FTC has the receipts to show it.

The agency cites several specific instances of products advertised on Amazon as “Made in USA,” including a “100% USA Made Duty Heavy” U.S. flag that has since been removed from the site, a work boots brand that appears to have edited out any reference to “Made in USA,” and a “This is My Happy Place Tucker hat” that’s still labeled “Made in USA,” despite identifying China as the product’s country of origin. These are only a few examples though.

Amazon’s marketplace has increasingly become a Wild West of products flooding its website from third-party vendors in countries that can offer bargain basement prices, like China. But there’s a hidden cost.  

A 2019 Wall Street Journal investigation found that “4,152 items for sale on Amazon.com Inc.’s site that have been declared unsafe by federal agencies, are deceptively labeled or are banned by federal regulators—items that big-box retailers’ policies would bar from their shelves. Among those items, at least 2,000 listings for toys and medications lacked warnings about health risks to children.”

And Amazon has only escalated its partnerships with third-party vendors since that investigation, as has Walmart, which also received a stern warning letter regarding its online marketplace sellers’ “Made in USA” use.

Though Amazon has always been known for its cutthroat pricing, which obliterated nearly all competitors in the bookstore industry and has progressively dealt death blows to traditional retailers in other categories, it’s taken an even more aggressive tack in recent months.

Reportedly, the company is hoping to mirror Chinese e-commerce platforms, like Temu, Shein, and DHGate, with a new discount storefront named Haul in coming months. This latest Amazon venture represents a race to the bottom that’s been supercharged by a U.S. Customs and Border Protection loophole, called the de minimis exemption.

First enacted in 1938 as a means of streamlining the Customs procedure for souvenirs brought into the U.S. by tourists returning home, de minimis in recent years has essentially been hacked by Shein, Temu, and other e-commerce retailers to import millions upon millions of direct-to-consumer packages that circumvent tariffs and inspections that traditional retailers, like GAP, pay.

Thankfully, Congress and the White House have both taken steps to curtail the damage that de minimis has done. On July 4, the One Big Beautiful Bill was signed into law with a provision that ends the de minimis exemption for all countries for a 10-year period that starts on July 2027. Earlier, President Trump had removed the exemption for imports from China and Hong Kong.

However, if you truly can’t resist Amazon’s marketing this Prime Day and want to support America’s hardworking men and women by buying “Made in USA,” here are some tips:

1. Reference our Made in America Directory to evaluate whether the product you’re eyeing is made by a company that’s listed.
2. Review our blog post explaining the meaning behind a “Made in USA” label and similar ones, like “Assembled in USA” that do not meet the FTC’s “Made in USA” standard.
3. On Amazon, click on the “Store” hyperlink right beneath a product listing. Does it direct you to a storefront that adheres to the Made in America company’s details branding? If not, you might need to do a little more investigating.  
4. Check that the “About this item” product information and the “Product Description” at the bottom of the page identifies the item as Made in USA. A “Find on Page” search can be helpful here.
5. Check the brand’s website off of Amazon. Does it identify its products as “Made in USA” there. If you can’t find a website independent of Amazon, that’s a major red flag.

Don’t feel like vetting your prospective Prime purchases this go around? Here are some of the Made in America deals worth your attention:

1. Anchor Hocking 16 Piece Glass Storage Containers with Lids (8 Glass Food Storage Containers & 8 Navy Blue SnugFit Lids) $39.99 $29.49
2. Tervis Sara Berrenson – Atlantica Collection Made in USA Double Walled Insulated Tumbler Travel Cup Keeps Drinks Cold & Hot, 16oz, Crab $16.99 $11.89
3. Aeropress Original Coffee Press 3 in 1 Brew Method Combines French Press, Espresso, Full Bodied Coffee Without Grit or Bitterness, Small Portable Coffee Maker for Camping & Travel $39.95 $27
4. Bee’s Wrap Beeswax Wraps for Food – Ocean Cut to Size 14×52″ Wax Paper Roll – Made in USA Reusable Waxed Paper & Bowl Covers – Organic & Eco-Friendly Alternative to Aluminum Foil & Plastic Wrap $24.99 $19.21
5. Green Toys Car Carrier, Blue – Pretend Play, Motor Skills, Kids Toy Vehicle. No BPA, phthalates, PVC. Dishwasher Safe, Recycled Plastic, Made in USA $24.99 $8.38
6. Step2 Game Time Sports Climber, Kids Indoor/Outdoor Playset, Backyard Playground Set, Slide, Climbing Wall, Basketball Hoop, Outside Jungle Gym, For Toddlers 2-6 Years Old $149.99 $108
7. 1888 Mills 725 GSM Premium 100% Cotton Bath Towels – Pack of 4 Luxury Bath Towel Set, 725 GSM, Super Soft & Highly Absorbent – Quick-Dry Plush Texture for Bathroom, Spa & Gym Use, White $99.99 $50.99
8. Pendleton Yakima Throw 54″ x 66″ – Wool Cotton, Lightweight, Soft and Durable Wool Throw for Home and Travel – Green Heather $149.00 $111.75 (Note that Pendleton’s website states this throw is “Made in USA” though Amazon’s product information identifies it as “Made in USA” or imported, so we encourage you to buy this blanket from Pendleton directly at the same price.)
9. Stretch Fleece Dog Coat, Stretchy Pet Sweater, Machine Washable Pullover for Winter and Fall, Red, 24 $38.00 $28.50