The Federal Trade Commission finalized its order on June 2, 2023 against motocross and ATV parts maker Cycra and its officer Chad James for falsely claiming the company’s products were made in the USA. The order was first announced in April 2023.
What the order requires
- No unqualified USA-origin claims unless final assembly and all significant processing happen in the USA and all or virtually all components are made and sourced here.
- Qualified claims must clearly disclose the extent of foreign parts or processing.
- “Assembled in USA” claims require that the product is last substantially transformed in the USA, with principal and substantial U.S. assembly.
Money
The order includes a monetary judgment of $872,577, partially suspended because of inability to pay. Cycra and James must pay $221,385.66. The Commission vote was 3-0.
Later refunds from this case are covered in our 2024 refund report.
FAQ
Who is Cycra?
A maker of motocross and ATV parts.
How much must it pay?
$221,385.66 of an $872,577 judgment.
What claims are restricted?
Unqualified Made in USA, qualified, and Assembled in USA claims that do not meet FTC standards.
Source & credit
Source: Federal Trade Commission, June 2, 2023: “FTC Finalizes Order Against Motocross and ATV Parts Maker Cycra for False Made in USA Claims”.