FTC Settles With Gennex Media for $146,249 Over False USA-Made Promo Product Claims

Gennex Media LLC and its owner, Akil Kurji, agreed on March 1, 2021, to settle Federal Trade Commission charges that they falsely claimed their “Brandnex” promotional products were made in the USA. The proposed settlement includes a monetary judgment of $146,249.24.

What the FTC alleged

• Gennex sells customizable promotional products such as wristbands, lanyards, temporary tattoos and buttons. It also does business as Brandnex, BrandStrong, PMGOA and Promotional Manufacturing Group of America.
• Since at least 2012, the company claimed on its website, price lists, Facebook header and a YouTube video that products were “Made in USA,” “USA MADE” and “Manufactured Right Here in America!”
• The FTC says that in many cases the products were wholly imported from China, and some shipped directly from China to customers.
• Kurji, the sole officer and shareholder, created or approved the marketing content, according to the complaint.

What the order requires

Gennex and Kurji may not make unqualified USA-origin claims unless the products meet the all-or-virtually-all standard. Qualified claims must clearly disclose foreign content, and “assembled in USA” claims must meet specific conditions. The order also requires compliance reports and ends after 20 years.

The Commission voted 4-0 to accept the proposed order for public comment. The Federal Register notice ran on March 8, with comments due April 5, 2021. In April, the FTC approved the final order, also by a 4-0 vote.

“This should be obvious, but you can’t say your products are made in the USA when most of them are made elsewhere.”

Daniel Kaufman, Acting Director, FTC Bureau of Consumer Protection

FAQ

How much is the judgment?

$146,249.24.

What products were involved?

Customizable promo items such as wristbands, lanyards, temporary tattoos and buttons.

Was the order finalized?

Yes. The FTC approved the final order 4-0 in April 2021.