That's an argument for vegetarianism, not veganism. What about wool, honey, milk, eggs. And different countries have different mechanisms. Using the USA as a basis, is admittedly a bad example.
Here in Germany, there are very strict regulations on how living conditions can be claimed, ranging from 1(literal torture) to 5(outdoor access, pasture raised etc.) I'm not saying it's a perfect system, but I can't agree that it's impossible and pointless to try when there are places actively trying and actively supporting l.