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It is in line with standards in other countries. Dr. Alessio Fasano of the Center for Celiac Research states, Twenty parts per million, or 20 parts of gluten per one million parts of food sample, is an accepted standard in many parts of the world for products that are labeled gluten-free.
As one of the criteria for using the claim gluten-free, the FDA set a limit of less than 20 ppm (parts per million) for the unavoidable presence of gluten in foods that carry this label. That is the lowest level that can be consistently detected in foods using valid scientific analytical tools.
Only foods that contain 20 parts per million (ppm) or less of gluten can be labelled gluten free.
Legally, only products with less than 20 parts per million (PPM) or less can be labelled as gluten-free. Gluten-free beer still contains alcohol.
The rule specifies, among other criteria, that any foods that carry the label gluten-free, no gluten, free of gluten, or without gluten must contain less than 20 parts per million (ppm) of gluten. This level is the lowest that can be reliably detected in foods using scientifically validated analytical methods.
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To clarify: 10 g of gluten is the equivalent of four slices of bread. Therefore, the designation of gluten-free as under 20 ppm provide a safe limit for those on a gluten-free diet.
By law, food labelled as gluten-free can contain no more than 20 parts per million (ppm) of gluten.

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