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‘Made in USA’ frauds to face $43K fine under new rule

Drone manufacturers, take notice. The Federal Trade Commission (FTC) has finalized a new rule that will crackdown on companies that make false, unqualified claims that their products are made in the USA.

To qualify to use the “Made in USA” label, businesses will have to prove that their products are primarily manufactured in the United States. What does it mean? It means a drone manufacturer cannot make “Made in USA” claims on labels unless:

  • 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 components of the product are made and sourced in the United States.

Civil penalties for “Made in USA” cheats

The FTC hopes that this new rule will benefit businesses that rely on the “Made in USA” label, but lack the resources to defend themselves from imitators. As such, the rule includes the ability to seek redress, damages, penalties,…

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Source: dronedj.com