Legal Blog

M&A Nugget: Made in America

One important facet of a purchaser’s due diligence investigation of a business is to determine whether the seller is in compliance with major laws applicable to its business.  With increasing frequency, manufacturers and marketers are using the term “Made in America” to describe their products.  Federal laws exist, the purpose of which is to prevent the use of that term in a deceptive or misleading manner.  Certain industries must disclose the content of their products made in the United States (automobile, textile, wool and fur product industries).  Companies that use the “Made in America” slogan on their product must have all or virtually all of the product made in the United States.  That means that all significant parts and processing that go into the product must be of United States origin; the product should contain no, or negligible, foreign content.  The company must have evidence to support its claim that its products are made in the United States.  Failure to follow the rules governing the use of “Made in America” can result in an enforcement action being brought by the Federal Trade Commission.  So, if a seller operates in an industry that requires United States parts to be identified or the seller uses the “Made in America” slogan, it is important that the purchaser asks appropriate questions to verify that the seller is in compliance.




If you have any questions about this or any other M&A issue,
please contact Glenn Solomon at or 443-738-1522.


ABOUT GLENN D. SOLOMON | 443-738-1522

Glenn D. Solomon is a principal at Offit Kurman and has provided counsel to businesses and business owners for more than twenty-five years. He has extensive experience in the purchase and sale of businesses, structuring ownership agreements, and advising companies in financial distress.









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