REUTERS
The logos were pulled to "prevent consumer deception" concerning the origin of the items, according to a letter to Walmart from the Federal Trade Commission. Fortune first reported on the letter.
Walmart's "Made in USA" claims were called into question this summer after the watchdog group Truth in Advertising discovered hundreds of products that were mislabeled.
For example, the group found that Walmart's store brand plastic sandwich bags were listed as "Made in USA" on the company's website, but the packaging says they are made entirely in Thailand.
The FTC launched a probe after the group released its findings.
The agency has decided to drop its investigation, however, now that Walmart has removed all "Made in USA" claims from its website.
The retailer has also updated its "Made in USA" logos for private brand products to include disclosures about what percentage of the products actually originate in the US.
"Based on your actions and other factors, the staff has decided not to pursue this investigation any further," FTC attorney Julia Solomon Ensor wrote in the letter. "This action should not be construed as a determination that there was no violation."
Walmart spokesman Kory Lundberg said the company is pleased with the FTC's decision.
"We are pleased with the FTC's decision and appreciate its thorough review of our program," Lundberg said in a statement. "We're committed to reviewing and strengthening our processes to help ensure customers have a great experience on our website and can find the products and information they are looking for."
The probe comes two years after Walmart made a major commitment to source more goods from US manufacturers.
The company promised to spend $250 billion on American-made products by 2013. to investing more in American-made goods.