The Federal Trade Commission announced on Oct. 19, 2016, that Chemence, Inc., a Georgia specialty chemical company, had agreed to pay $220,000 and change its advertising to settle the agency’s lawsuit over “Made in USA” claims for its fast-acting glues.
The FTC’s case
Chemence makes cyanoacrylate glues, often called super glues, sold under names including Kwik Fix, Hammer Tite and Krylex. The FTC sued the company in federal court in Cleveland in February 2016. It was one of the few Made in USA cases the agency had taken to court in recent years.
The complaint said Chemence labeled its glues “Made in USA” or “Proudly Made in USA,” which suggested they were all or virtually all made in the USA. According to the FTC, about 55% of the cost of the chemicals in the glues came from imported chemicals that are essential to how the glues work.
The FTC also said Chemence helped others mislead consumers by giving its Made in USA marketing materials to private-label sellers and to third-party websites and storefronts that sold its glues.
What the settlement requires
Under the stipulated final order, Chemence:
- pays a $220,000 monetary judgment to the FTC
- may not make an unqualified Made in USA claim unless final assembly or processing, and all significant processing, take place in the USA, and all or virtually all ingredients or components are made and sourced in the USA
- may make a qualified claim only with a clear disclosure, right next to the claim, of how much foreign content or processing the product includes
- may not give others the means to make deceptive Made in USA claims about its products
Chemence neither admitted nor denied the allegations, except as stated in the order.
The order did not end the matter. Years later, the FTC accused Chemence of violating it. See our coverage of the $1.2 million order in 2021.
FAQ
What products were involved?
Chemence’s cyanoacrylate glues, including Kwik Fix, Hammer Tite and Krylex.
How much imported content did the FTC cite?
About 55% of the cost of the glues’ chemical inputs, according to the FTC.
How much did Chemence pay?
$220,000 under the stipulated order.
Source & credit
Source: FTC Business Blog: “FTC to glue company: Stick to established Made in USA principles”, Oct. 19, 2016.
Also: Stipulated order for permanent injunction and monetary judgment; Legal Newsline: “FTC settles with Chemence after allegations of falsely saying products were ‘Made in USA’”, Oct. 28, 2016.