After a public comment period, the Federal Trade Commission on January 23, 2024 finalized its consent order against Florida-based EXOTOUSA LLC, which does business as Old Southern Brass. The agency said the company falsely claimed its products were made in the USA, that it was run by veterans, and that it gave 10 percent of sales to military charities.
What the complaint said
- The company’s website and ads said its products were made in the USA. One post said “all of our products are 100% American made.”
- Many products were wholly imported from China or contained significant imported content.
- The company was not run by a veteran, and items sold as made from casings “previously used by the U.S. military” were not used by the military.
- Charitable deductions came to less than one-half of 1 percent of sales, not the 10 percent it claimed.
What the order requires
- A payment of $150,000 to the FTC, against a $4,572,137.66 judgment that is partly suspended because the defendants cannot pay the full amount.
- No unqualified USA-origin claims unless final assembly and all significant processing happen in the USA and all or virtually all parts are made and sourced here.
- Clear disclosure of foreign content in any qualified Made in USA claim, and strict limits on “Assembled in USA” claims.
- No false claims about ties to or support of the military or veterans.
The order also covers owner Austin Oliver. The FTC first announced the case on December 6, 2023, and the Commission voted 3-0 to make the order final.
“This company and its owner’s brazen deception cheated consumers who wanted to support U.S. manufacturing, veteran-operated businesses, and veteran charities.”
Samuel Levine, Director, FTC Bureau of Consumer Protection (December 2023)
FAQ
How much does Old Southern Brass pay?
$150,000 now, on a $4,572,137.66 judgment that is partly suspended.
What were the false claims?
Made in USA claims on goods imported from China, veteran-operated status, and donating 10 percent of sales to military charities.
Is the order final?
Yes. The FTC finalized it on January 23, 2024 by a 3-0 vote.
Source & credit
Source: Federal Trade Commission, January 23, 2024: “FTC Finalizes Order Requiring Old Southern Brass to Stop False Made In USA and Veteran Affiliation Claims”.
Also: Federal Trade Commission, December 6, 2023: “FTC Order Requires Old Southern Brass to Pay for False Claims of ‘Made in the USA’ and Veteran Affiliations”.