The Federal Trade Commission finalized an order on June 22, 2022 against Resident Home LLC and owner Ran Reske over ads saying DreamCloud mattresses were made from 100% USA-made materials. They will pay $753,000.
The company’s marketing said the mattresses were “proudly made with 100 percent USA-made premium quality materials.” The FTC said all DreamCloud mattresses are finished overseas, and some are wholly imported or use significant imported materials.
What the order requires
- Unqualified USA-origin claims are allowed only when final assembly, final processing 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 foreign parts, components or processing in the product.
The Commission voted 3-2. Commissioners Noah Joshua Phillips and Christine S. Wilson voted no and issued a joint dissent. The FTC called the company a repeat offender in the headline of its release.
FAQ
How much will Resident Home pay?
$753,000.
What claim did the FTC challenge?
That DreamCloud mattresses were made with 100% USA-made materials.
How did the Commission vote?
3-2, with two commissioners dissenting.
Source & credit
Source: Federal Trade Commission, June 22, 2022: “Federal Trade Commission Finalizes Action Against ‘Made in USA’ Repeat Offender”.