FTC Finalizes Order Against Motocross and ATV Parts Maker for Alleged False Made in USA Claims

June 6, 2023/Richard Newman

The FTC’s order, first announced in April, 2023 would stop both from making deceptive claims about products being “Made in USA” and require them to pay a monetary judgment.

The FTC’s order against both the parts maker and its officer includes a number of requirements about the claims the defendants make:

  • Restriction on unqualified claims: The company will be prohibited from making unqualified U.S.-origin claims for any product, unless it can show that the product’s final assembly or processing—and all significant processing—takes place in the U.S., and that all or virtually all ingredients or components of the product are made and sourced in the U.S..
  • Requirement for qualified claims: The company is required to include in any qualified Made in USA claims a clear and conspicuous disclosure about the extent to which the product contains foreign parts, ingredients or components, or processing.
  • Requirement for assembly claims: The company must also ensure, when claiming a product is assembled in the U.S., that it is last substantially transformed in the U.S., its principal assembly takes place in the U.S., and U.S. assembly operations are substantial.

The order includes a monetary judgment of $872,577, which is partially suspended based on an inability to pay.

The parts maker and its officer will be required to pay $221,385.66.

Richard B. Newman is an FTC attorney at Hinch Newman LLP. Follow FTC defense lawyer on JD Supra.

Posted in , ,

Richard Newman

Richard B. Newman is a nationally recognized FTC advertising compliance, CID investigation and regulatory enforcemetn attorney. He regularly provides advertising counsel and represents clients in high-profile investigations and enforcement proceedings initiated by the Federal Trade Commission, state attorneys general, departments of consumer affairs, and other federal and state agencies with jurisdiction over advertising and marketing practices. Richard is also an ecommerce lawyer and spam defense attorney. His practice additionally focuses upon false advertising defense, data privacy, cybersquatting, intellectual property law and transactional matters relating to the dissemination of national advertising campaigns, including the gamut of affiliate marketing, telemarketing, lead generation, list management and licensing agreements. Richard advises clients on how to minimize the legal risks associated with digital marketing, email marketing, telemarketing, social media influencer campaigns, endorsements and testimonials, negative option marketing models, native advertising, online promotions and comparative advertising,
Contact

Topics

Topics

Archives

Archives

About This Blog and Hinch Newman’s Advertising + Marketing Practice

Hinch Newman LLP’s advertising and marketing practice includes successfully resolving some of the highest-profile Federal Trade Commission (FTC) and state attorneys general digital advertising and telemarketing investigations and enforcement actions. The firm possesses superior knowledge and deep legal experience in the areas of advertising, marketing, lead generation, promotions, e-commerce, privacy and intellectual property law. Through these advertising and marketing law updates, Hinch Newman provides commentary, news and analysis on issues and trends concerning developments of interest to digital marketers, including FTC and state attorneys general advertising compliance, civil investigative demands (CIDs), and administrative/judicial process. This blog is sponsored by Hinch Newman LLP.

Featured Posts

» Richard B. Newman Selected to Author Consumer Protection Section of Prestigious ALM FTC Law, Practice and Procedure Treatise

» Richard Newman Quoted by Law.com on First FTC “Review Hijacking” Case

» The Art of Responding to an FTC Civil Investigative Demand (CID)