Utah Company Settles FTC Charges of False 'Made in USA' Claims
A Utah-based marketer of iPhone accessories, bottle holders, lens cleaners, dog collars, leashes, and other products agreed to settle Federal Trade Commission charges that it falsely claimed some of its products were “Made in the U.S.A” or “Truly Made in the USA,” even though the products contained “substantial” foreign content, said the FTC. Under the terms of the proposed settlement, the company will have to stop making claims of U.S. origin of its products unless virtually all of a given product is made in the U.S. It would also have to stop distributing deceptive promotional material to third-party retailers, and must contact all distributors who bought or received products between 2010 and 2013 and provide them with a notice and copy of the order, the FTC said.
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According to the FTC, E.K. Accessories said on its website that it derives pride from its “Made in the USA” product, despite importing many of its products and components. The company also distributed deceptive promotional materials for its products to third-party retailers like Amazon and REI, the FTC alleged. The agency said E.K’s actions violated the Federal Trade Commission Act. The FTC voted 4-0 to accept the proposed settlement, which will be published soon in the Federal Register. Comments on the proposed settlement are due by Nov. 21.