When you see the 'Made in the USA' stamp, you assume that item was produced in America, right?
A Texas-based equipment company recently settled a lawsuit with the Federal Trade Commission agreeing to stop using the Made in USA stamps. Block Division, Inc. sells metal pulleys. According to the FTC, the company imported some parts which were pre-stamped with the 'Made in the USA' label.
According to a news release from the FTC:
The company was ordered to stop making any false claim that its products were “Made in the USA” and to ensure its advertisements, sales, distribution and product labeling remain in compliance...A company that makes a “Made in the USA” product should be able to prove that all or virtually all of that product was made in the United States.
Companies using the 'Made in the USA' label are required to prove that "all or virtually all of that product was made in the United States".
If you know of a product falsely claiming in was made in the USA, you can file a complaint with the FTC.