The Federal Trade Commission approved a final consent order on February 12, 2021, requiring glue maker Chemence Inc. and its president, James Cooke, to pay $1.2 million over deceptive Made in USA claims. The FTC said it is the highest monetary judgment ever in a Made in USA case.
The Commission vote was 4-0. The case was first announced in December 2020.
What the FTC alleged
- Chemence, based in Alpharetta, Georgia, supplied pre-labeled, pre-packaged glues with unqualified Made in USA claims to trade customers that sold them under retailer brand names.
- Labels, some with an American flag, appeared on products including Master Super Glue, JB WELD SuperWeld, Stick Fast Instant CA Adhesive, Pink Gel Nail Glue, SAATI Ultrafix CA – MV, and Kiss Maximum Speed Nail Glue.
- In many cases, foreign materials made up more than 80 percent of material costs and more than 50 percent of overall manufacturing costs.
- The FTC also said the company and Cooke violated a 2016 order on the same issue, which carried a $220,000 judgment.
What the order requires
Chemence and Cooke may not make unqualified USA-origin claims unless final assembly or processing, and all significant processing, happen in the USA and all or virtually all components are made and sourced in the USA. Qualified claims must clearly disclose foreign content. The order also requires them to notify certain trade customers and file compliance reports.
FAQ
How much must Chemence pay?
$1.2 million, a record for an FTC Made in USA case.
Which products were involved?
Glues sold under brands including Master Super Glue and JB WELD SuperWeld.
Was this a repeat case?
Yes. The FTC said Chemence violated a 2016 order.
Source & credit
Source: Business Insurance, February 12, 2021: “Glue company settles with FTC over ‘Made in USA’ claim”.
Also: MyChesCo reprint of the FTC release, February 16, 2021: “FTC Approves Final Order Stopping Misleading ‘Made in USA’ Claims”.