Strategy
FTC
The US Federal Trade Commission — the agency that regulates advertising truthfulness, "Made in USA" claims, subscription-billing practices, and influencer disclosure.
The FTC (Federal Trade Commission) is the US regulatory agency that governs advertising truthfulness, subscription billing practices, influencer disclosure rules (#ad, #sponsored), "Made in USA" claims, and negative-option marketing (auto-renewal). FTC enforcement has tightened materially since 2023, with particular focus on three areas that hit dropshipping directly:
- Fake reference prices: Anchor prices that were never real prices are explicitly banned.
- Subscription traps: Free trials that auto-convert to paid subscriptions without clear disclosure.
- Influencer non-disclosure: Paid creators must clearly disclose the relationship.
For dropshipping stores selling to US customers, operating outside of US jurisdiction doesn't protect you — the FTC can and does pursue international sellers who target US consumers.