What are the California regulations for using "Made in USA" labels on products my business sells?

To use a "Made in USA" label in California, your product must be entirely or substantially made in the United States, with only a very small percentage of foreign content. Here is how to determine if your product meets California's strict standard. Step 1: Identify All Product Components Create a complete list of every individual article, unit, and part used to make your final product. You must trace the country of origin for every single component, from the main chassis down to the smallest screw. Step 2: Document Component Origins and Costs Collect and organize all supply chain documents, including invoices and supplier certifications, that prove the origin and wholesale cost of each component. This documentation is your evidence to support the "Made in USA" claim. Step 3: Calculate the Foreign Content Percentage Under California Business and Professions Code Section 17533.7, you must calculate the total wholesale value of all foreign-made parts. To legally use the "Made in USA" label, this foreign content must not exceed 5% of the final product's total wholesale price. Step 4: Evaluate Domestic Availability If foreign content exceeds 5%, you may still qualify if you can prove two things: the foreign parts are not available from a domestic source, AND their total wholesale value does not exceed 10% of the product's final wholesale price. You must have documentation proving you could not source the parts domestically. Important details and nuances: California's standard is stricter than the federal standard. The key is the wholesale value calculation. The entire product, including all labor for final assembly and manufacturing, must be made, manufactured, or produced within the United States. If your product does not meet this test, consider using a qualified label like "Assembled in USA from foreign and domestic components." Warnings and limitations: Violating this law can lead to significant penalties under California's False Advertising Law (FAL) and Unfair Competition Law (UCL), including civil fines and lawsuits. These regulations apply to any product sold to consumers within California, regardless of where your business is based. This is general information and does not constitute legal advice. For complex situations, especially if your product has a global supply chain, consult with a qualified California attorney.