By Timothy S. Donahue
Top Takeaways:
- Vape companies warned: The FTC issued warning letters to two e-cigarette companies over potentially deceptive “Made in the USA” claims.
- Broader manufacturing scrutiny: The action comes amid federal agencies’ focus on domestic manufacturing claims and efforts to curb unauthorized imports of nicotine products.
- Industry reminder: Companies marketing nicotine products that make U.S.-origin claims must ensure those products meet the FTC’s “all or virtually all” domestic content standard.
Federal regulators in the U.S. are broadening their scrutiny of nicotine products beyond authorization and imports to include marketing practices.
The U.S. Federal Trade Commission (FTC) has issued warning letters to Lucky Bar Holdings LLC and My Vape Order Inc., alleging that the companies may have misrepresented certain e-cigarette products as “Made in the USA” despite indications that the products were imported, in whole or with significant parts. Lucky Bar allegedly used “Made in Texas” claims.
The two vape businesses were among eight companies across several industries that received warning letters as part of the agency’s latest enforcement initiative targeting questionable claims about U.S. origin. The FTC said consumers who buy products advertised as American-made should be able to rely on those claims.
“When Americans spend their hard-earned dollars on goods marketed as ‘Made in the USA,’ they deserve to have confidence that these products were all or virtually all made in this country,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. “We will hold accountable any company that undermines Americans’ trust with misleading or outright false U.S. origin claims.”
The warning letters stem from the FTC’s enforcement of its Made in USA Labeling Rule, which generally requires that products advertised as “Made in the USA” be “all or virtually all” manufactured domestically. Products with significant imported components or foreign manufacturing generally cannot make unqualified U.S.-origin claims.
Although the FTC did not identify the specific vaping products at issue, the inclusion of Lucky Bar Holdings and My Vape Order highlights growing regulatory scrutiny of marketing practices in the nicotine industry, even as the U.S. Food and Drug Administration continues its enforcement campaign against unauthorized vaping products.
The action follows a March executive order by President Donald Trump directing the FTC to prioritize enforcement against deceptive “Made in America” claims. Since then, the Commission has announced multiple enforcement actions and settlements against companies accused of falsely marketing imported products as domestically manufactured.
In addition to complying with FDA marketing authorization requirements and import regulations, manufacturers and retailers making U.S.-origin claims must also satisfy FTC advertising standards. Companies that fail to do so risk enforcement even if their products otherwise comply with tobacco regulations.
In late June, the FDA proposed a rule that, for the first time, would require foreign tobacco product manufacturers to register their facilities and list their products with the agency. The move aims to strengthen oversight of imported tobacco products and curb the flow of unauthorized e-cigarettes into the United States.
The proposal is particularly significant for the e-cigarette market, where nearly all authorized and unauthorized disposable products entering the United States are manufactured overseas.
Under the proposal, manufacturers would also be required to submit substantially more detailed information for each product, including nicotine concentration, nicotine source, characterizing flavors, package type and size, and FDA Submission Tracking Numbers.
For e-cigarettes, companies would also report specifications such as e-liquid volume, battery capacity, and wattage.
