American flags

The American flag is more than just a symbol. For the thousands that work in the domestic U.S. flag industry, the Stars and Stripes represent a livelihood. Producing the American flag within our borders keeps hundreds of sewers, warehouse employees, chemical engineers, and other manufacturing specialists employed. Yet many consumers are purchasing their American flags online, where third-party sellers can easily label their products as American-made when they are not.  

Our blog discusses common practices online retailers use to mislead consumers. We also share firsthand accounts from industry experts on how these deceptive practices impact the U.S. flag industry.  

The Deceptive Practices of Counterfeiters 

Counterfeiters use savvy tactics to mislead consumers, which has had devastating effects on the domestic U.S. flag industry. 

Many companies will use deceptive labeling to make it look like their product is made in the U.S.A. when it is not.

“These imported U.S. flags have created an unfair advantage for off-shore sellers and manufacturers, who are primarily based in China, and breaking numerous U.S. Laws,” explained Julye Spinelli of Saratoga Flag Company in New York. “Our domestic manufacturers believe numerous factories will close soon if this fraud is permitted to continue unchecked by Federal authorities.” 

While brick-and-mortar retailers are required to verify and display the country of origin of their products, the same regulations do not exist for online stores. The lack of regulations for online marketplaces like Amazon makes it easy for sellers to claim that their products are made in the U.S.A. when they are not. 

Reggie VandenBosch, the Vice President of Sales at Valley Forge Flag Company and former President of the Flag Manufacturers Association of America (FMAA), purchased several flag products off Amazon to see if they were truly made in the U.S.A. as claimed. However, he found almost no evidence that these flags were domestically produced. Many of these flags didn’t even have labels stating their country of origin, a requirement for all textiles sold in the U.S. Instead, when he did a reverse image search, the products were often traced back to factories in China. 

Beyond false country-of-origin claims, online retailers use several other deceptive practices. These include: 

  • Using misleading language such as "U.S. company" or "Genuine U.S. flag" to give the impression that their products are American made.  
  • Making minor modifications to flags produced overseas and labeling them as "Made in the U.S.A.," exploiting loopholes in labeling laws.  
  • Taking genuine U.S.-made flags, marking up the price, and advertising them as higher quality than they actually are. 

“When somebody is claiming that their product is made in the U.S.A. and it's selling at a significant discount to the genuine article, it creates a real undervaluing situation,” VandenBosch said. “It’s really offensive to the American people who find out later that their product isn’t made in the States.” 

The Impact on American Businesses 

Amazon's revenue growth continues to soar as more consumers rely on them for their shopping needs. The convenience of typing a product into Amazon's search bar and getting it delivered quickly has made it a go-to choice for many. Unfortunately, this convenience comes at a cost. Shoppers often assume that Amazon vets the products it sells, but this is far from the truth. It's easy for companies to make false claims about their products, misleading customers into buying counterfeit goods. 

For small businesses and American manufacturing, the impact is devastating. Years ago, an Amazon search for "American flags" once showcased genuine American companies; now it features several fraudulent retailers advertising ridiculously low-priced flags as authentically "American-made." These flags, often priced in the single digits, are almost certainly made overseas. This shift hurts legitimate businesses, as consumers increasingly prioritize the ease of shopping on Amazon over verifying the authenticity of their purchases.  

Stolen image from Temu Stolen image from Temu
Chinese retailers like Temu will often steal images from other companies to legitimize their product listings

The rise of de minimis shipments has exacerbated this problem. A de minimis shipment is a shipment that is too small to require import taxes, screenings, and inspections. In 2016, Congress raised the maximum value of de minimis shipments from $200 to $800. Using the fulfillment by Amazon program, foreign sellers can import flags under the de minimis threshold and store them in Amazon warehouses for fulfillment. Because these smaller shipments bypass the usual inspections required for larger shipments, foreign sellers can easily skirt U.S. labeling laws on textiles, making it easier to deceive customers.  

Furthermore, Amazon's policies make it difficult for small businesses to compete on the platform. Businesses have a hard turn during a profit against high fees, the necessity to lower prices to stay competitive, and the constant battle against counterfeit listings. 

For example, when a product is falsely claimed to be made in the U.S.A., Amazon requires legitimate manufacturers to provide proof that the seller is lying. This process is resource-intensive and time-consuming. Even if Amazon takes down the fraudulent listing, the seller can quickly create a new storefront and continue their deceptive practices. 

Spinelli from Saratoga Flag Company warned, "Numerous factories will close soon if this fraud continues unchecked by federal authorities. Counterfeit flags, sold at significantly lower prices, create a price war that genuine manufacturers cannot win. This not only affects their bottom line but also threatens the jobs of American workers as factories struggle to stay open amidst unfair competition.” 

Combat Fraud with the "Make American Flags in America Act” 

The "Make American Flags in America Act" (H.R. 4137) emerged from extensive discussions within the National Independent Flag Dealers Association (NIFDA) about the ongoing challenges facing the domestic U.S. flag industry. 

For years, online fraud has significantly harmed small businesses and manufacturers. While serving on the NIFDA Board of Directors, Spinelli sought input from her peers on the best way to combat this fraud. The consensus was to work with Congress to introduce legislation requiring the government to purchase and display 100% American-made U.S.A. flags. 

In 2022, Julye shared her insights with Representative Elise Stefanik of New York's 21st Congressional District. In response, Representative Stefanik drafted the “Make American Flags in America Act” (H.R. 4137) and sought feedback from the NIFDA Board of Directors before introducing it to Congress on July 5, 2022. The bill mandates that the federal government purchase and display American flags made entirely in the U.S.A. and requires the FTC to conduct a study on fraudulently labeled U.S. flags.  

In July 2024, President Joe Biden passed the "All-American Flag Act," a law similar to the "Make American Flags in American Act" 

American flag in front of Congress American flag in front of Congress

Both the "All-American Flag Act" and the "Make American Flags in America Act" require the government to buy flags made entirely of American materials. However, the "All-American Flag Act" does not address fraud or mislabeling on online marketplaces. Before the "All-American Flag Act" passed, the federal government was required to buy flags that contained just 50 percent of American-made materials. 

Both NIFDA and the Flag Manufacturers Association of America (FMAA) have publicly endorsed H.R. 4137, believing it to be the most effective measure to address widespread online fraud. The unified support from NIFDA and FMAA underscores the importance of this legislation in preserving the integrity of the American flag and supporting domestic manufacturers.  

Currently, the “Make American Flags in America Act” is pending mark-up in the Energy and Commerce Committee in Congress. According to Representative Stefanik’s staffers, H.R. 4137 has a strong chance of passing by the end of the year.  

Support Genuine American Companies 

Want to stand against flag fraud and support genuine American companies? Contact your local representative. While H.R. 4137 has bipartisan support, encouraging Congress to act now is the best way to ensure the bill becomes written into law. Visit the NIFDA website to download a sample letter to send to your representative.  

When it comes time to uphold the integrity of our national symbol and help keep jobs within our borders, every voice counts. Join our cause in supporting high-quality, made-in-the-U.S.A. products.  

Buy American with AmericanFlags.com 

Buying American flags from AmericanFlags.com shows your patriotism and supports American businesses. While imported flags often use false advertising to increase their market share, AmericanFlags.com is dedicated to transparency about our products. The FMAA label on our flags assures you of genuine American craftsmanship. Buying American-made products from AmericanFlags.com helps keep American manufacturing strong. Join us in making a difference today!