The Federal Trade Commission finalized its order against Utah apparel company Lions Not Sheep Products, LLC and its owner, Sean Whalen, on July 28, 2022. The company and Whalen must pay $211,335.
The FTC first announced the case in May 2022. Its complaint said the company put phony Made in USA labels on clothing imported from China and other countries.
What the order requires
- No unqualified USA claims without proof. Final assembly or processing, and all significant processing, must take place in the USA, and all or virtually all parts must be made and sourced here.
- Qualified claims must disclose foreign content. Any qualified Made in USA claim needs a clear disclosure of foreign parts, ingredients or processing.
- Assembled in USA claims have their own test. The product must be last substantially transformed in the USA, with principal and substantial assembly here.
The Commission voted 5-0 to approve the final order. The FTC’s Made in USA Labeling Rule took effect on August 13, 2021, and companies that break it after that date can face civil penalties.
FAQ
How much must Lions Not Sheep pay?
$211,335.
What did the FTC allege?
That the company replaced foreign-origin labels on imported clothing with Made in USA labels.
How did the Commission vote?
5-0 to approve the final order.
Source & credit
Source: Federal Trade Commission, July 28, 2022: “Federal Trade Commission Finalizes Action Against ‘Made in USA’ Offender Who Ripped ‘Made in China’ Tags Out of Apparel”.