Republican Lawmakers Demand FTC Action on Misleading “Made in the USA” Flags Imported from China

Federal Trade Commission Building with sign and trees.

House Republicans demand FTC action against Chinese companies selling counterfeit “Made in USA” flags, threatening American manufacturers and deceiving patriotic consumers.

At a Glance

Three House Republicans urge FTC to investigate Chinese companies falsely labeling flags as “Made in USA”
Major retailers Amazon and Walmart identified as platforms selling misrepresented Chinese-made flags
Deceptive practice undermines domestic flag makers and exploits patriotic American consumers
Lawmakers introduced the Make American Flags in America Act to ensure federal properties display only U.S.-made flags

Republican Lawmakers Call for FTC Investigation

House Republicans are taking a stand against Chinese manufacturers undermining American industry and deceiving consumers. Rep. Elise Stefanik, along with Reps. Virginia Foxx and Nick Langworthy, has called on Federal Trade Commission (FTC) Chair Lina Khan to investigate Chinese companies selling counterfeit “Made in USA” flags on major retail platforms. This deceptive practice not only threatens domestic flag makers but also exploits patriotic Americans who specifically seek to purchase U.S.-made flags.

The lawmakers argue that this fraudulent behavior undermines the integrity of “Made in USA” labeling and poses a significant threat to American manufacturing. Major retailers such as Amazon and Walmart have been identified as platforms where these misleading products are sold, further amplifying the issue’s scope and impact on the U.S. economy.

NCTO & the American flag and #textile industry sincerely thank @RepStefanik for her lead in calling on the FTC to take immediate action to crack down on Chinese-made flags falsely labeled & advertised as Made in USA & being sold on online marketplaces. 👇https://t.co/lZlcnrzYPQ

— NCTO (@NCTO) November 1, 2024

Impact on American Flag Industry

The National Council of Textile Organizations (NCTO) has thrown its support behind the lawmakers’ efforts, citing the economic distress faced by the U.S. flag and textile industries due to cheap imports. The situation has become so dire that the industry has lost 21 plants in the last 18 months alone, according to NCTO President and CEO Kim Glas.

“The U.S. flag industry and textile industry as [a] whole is facing economic distress—having lost 21 plants in the last 18 months—due to a flood of cheap, falsely labeled and subsidized imports, a lack of trade enforcement, and the gaping de minimis loophole that is allowing these bogus products to enter the U.S. from China duty free and uninspected” – NCTO President and CEO Kim Glas

Julye Spinelli, owner of the upstate New York-based Saratoga Flag Company, has reported a 100% increase in China-made American flags in circulation, highlighting the severity of the situation for domestic manufacturers. This surge in counterfeit products not only threatens American jobs but also compromises the symbolic integrity of the U.S. flag.

Legislative Action and Broader Implications

In response to this growing threat, Rep. Stefanik and other lawmakers introduced the Make American Flags in America Act in June 2023. This legislation aims to ensure that all U.S. flags displayed on federal property are fully American-made, reinforcing the commitment to domestic manufacturing and patriotic values.

“This fraudulent behavior deceives American consumers seeking to show their patriotism, threatens our domestic flag industry, and undermines the integrity of ‘Made in the USA’ advertising and labeling” – House Republican Conference Chair Rep. Elise Stefanik (R-N.Y.) and joined by Reps. Virginia Foxx (R-N.C.) and Nick Langworthy (R-N.Y.)

The issue of counterfeit “Made in USA” flags is part of a broader context of U.S.-China strategic competition. The 118th Congress has focused intensely on this relationship, with the China Select Committee (CSC) releasing a report containing over 150 policy recommendations to address threats posed by the Chinese Communist Party (CCP). These recommendations include legislative and regulatory actions to strengthen U.S. economic competitiveness, such as imposing duties on critical Chinese products and expanding export control regimes.

FTC Enforcement and Future Outlook

The call for FTC action comes in the wake of recent enforcement against similar “Made in USA” violations. In July 2022, the FTC finalized an order against Lions Not Sheep Products, LLC, and its owner Sean Whalen, requiring them to pay $211,335 for falsely claiming their apparel was Made in USA. This precedent underscores the seriousness with which the FTC views such deceptive practices and sets the stage for potential action against Chinese flag manufacturers.

As the Biden administration takes steps to address the de minimis loophole and announces new tariff hikes on Chinese goods, including critical sectors like semiconductors and green energy, the focus on protecting American manufacturing is intensifying. These actions, combined with legislative efforts and FTC enforcement, signal a comprehensive approach to countering unfair Chinese trade practices and safeguarding American industries.

The fight against counterfeit “Made in USA” flags is more than just a matter of economic policy; it’s a stand for American values and the integrity of our national symbols. As this issue continues to unfold, it will likely remain a focal point in the ongoing dialogue about U.S.-China relations and the protection of American manufacturing.