On September 1, 2015, California Section 17533.7 of the California Business and Professions Code was amended. This California law (often referred to as country of origin (COO) labeling requirements) restricts the in-state sale of merchandise bearing the words "Made in U.S.A.," "Made in America," "U.S.A." or other similar words that signify that the item has been domestically manufactured.

Under the California amendments, merchandise that is manufactured or produced in the US with foreign-made articles, units or parts that bears a domestic COO-label can be sold in California, if the foreign parts do not constitute more than either:

Before these amendments, merchandise sold in California could not bear domestic COO markings on its labeling or packaging if any component part was made outside the US. This standard was more stringent than the standards of every US state and those of the Federal Trade Commission (FTC), which requires that all or virtually all of a products parts must be domestically manufactured.

Before the amendments, California's COO labeling requirements:

Although the new California amendments have provided more certainty on labeling requirements, the FTC has not quantified or provided guidance on the practical application of their "all or virtually all" standard. Therefore, interested parties should review all applicable COO labeling requirements before approving a label that makes a claims of domestic manufacture.

These amendments became effective on January 1, 2016.

For more information on general made in the USA labeling requirements, see Practice Note, Made in USA Claims. For information on COO requirements on government contractors, see Practice Note, Buying American: Country of Origin Requirements in US Government Contracts.