Lina Khan, the former Federal Trade Commission chair under Joe Biden, is warning that dialing back enforcement at the agency will result in a surge of deceptive "Made in USA" claims, putting honest American businesses at a disadvantage.
“Made in USA” rules under pressure
On April 26, Khan responded to a post on X from menswear writer Derek Guy, who pointed out that the FTC has strict standards for labeling products as "Made in America," and that violations can carry serious fines, though many go undetected. "If you see fraud, you can report it to the FTC with a simple email," he said.
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Khan took the opportunity to contrast current enforcement efforts with those during President Donald Trump's first term. "The first Trump administration was famously weak when it came to policing Made in USA fraud," she wrote, linking to a 2019 New York Times article detailing how Trump's appointees to the FTC blocked penalties against companies caught mislabeling imported goods.
Khan praised Rohit Chopra, a fellow Democrat and former FTC commissioner, for helping finalize a rule that empowers the FTC to fine companies for falsely claiming their products are made in America.
"Thanks to @ChopraUSA, we finalized a rule so that firms lying about their products being made in America now face fines," Khan said. "Gutting consumer protection enforcement means Made in USA fraud will skyrocket, punishing honest American businesses."
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Trump Tightens Grip on the FTC
Since returning to White House in January, Trump has moved aggressively to assert control over independent agencies, including the FTC. In March, he fired Democratic commissioners Alvaro Bedoya and Rebecca Kelly Slaughter. Both claimed the move was illegal and have sued the Trump administration.
"The president just illegally fired me. This is corruption plain and simple," Bedoya wrote on X.
With those seats vacated, Trump installed allies, including current FTC Chair Andrew Ferguson. Critics say these moves undermine the FTC's independence and open the door to industry influence.
Doubts about Ferguson's intentions
Chair Ferguson initially calmed some fears when he announced the FTC would continue using the 2023 Merger Guidelines developed under Khan's leadership. That decision was seen by some as a win for antitrust advocates, especially those aligned with the "New Brandeis" movement.
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But legal experts remain wary. "It is possible to get the right answer for the wrong reason," wrote law professor Darren Bush in a February column for The Sling. He noted that Ferguson had previously pledged to end "Lina Khan's war on mergers" and accused her of politicizing antitrust enforcement.
Ferguson has also taken steps to align the FTC more closely with Trump's broader agenda, including ending the agency's diversity programs and blocking political appointees from participating in events hosted by organizations critical of Trump. Meanwhile, his resistance to investigating sectors outside Big Tech, such as Bedoya's call to probe rising egg prices, has raised further concerns, according to Bush.
As Khan warns, pulling back on consumer protections could create a flood of dishonest marketing, with consequences for the very companies that follow the rules.
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