What's Happening?
California has updated its stringent 'Made in USA' labeling standards, allowing products with up to 5% foreign content to be labeled as such, provided the foreign materials do not exceed 10% if they cannot be sourced domestically. This change, effective since January 2016, aligns more closely with the Federal Trade Commission's guidelines, which permit products to be labeled 'Made in USA' if 'all or virtually all' of the materials are domestic. The modification aims to provide flexibility for manufacturers while maintaining consumer trust in labeling.
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Why It's Important?
The adjustment in California's labeling standards is significant for manufacturers who face challenges in sourcing all components domestically. It provides them with the ability to market their products as 'Made in USA,' potentially increasing consumer appeal and sales. This change also reflects a broader trend towards harmonizing state and federal regulations, which can simplify compliance for businesses operating across multiple jurisdictions. It underscores the importance of balancing strict labeling standards with practical manufacturing realities.
