The Federal Trade Commission voted 3-2 to finalize Made in USA settlements with Patriot Puck and with Sandpiper of California and PiperGear USA, the agency made public on April 17, 2019. The orders carry no fines, and the companies did not have to admit wrongdoing.
The cases
- Patriot Puck: The FTC said the company called its pucks “The Only American Made Hockey Puck!” and “100% American Made!” but had imported more than 400,000 pucks from China since 2016.
- Sandpiper and PiperGear: The California makers of bags, wallets and tactical gear marketed to military personnel used #MadeInUSA online and “American Made” tags. The FTC said about 80% of PiperGear’s products were imported or had significant imported parts, and 95% of Sandpiper’s products were imported as finished goods.
The FTC first announced the cases in September 2018. Under the orders, the companies must stop making false or unsupported origin claims.
The split
The three Republican commissioners voted to finalize the orders. Commissioner Rohit Chopra dissented again, noting that public comments on the Sandpiper/PiperGear case “were unanimously opposed to the proposed settlement.” He said he would move to pursue a Made in USA rule so the FTC could seek penalties, and he noted Congress gave the agency that authority in 1994.
Commissioner Rebecca Kelly Slaughter switched her vote and dissented, writing that she was “persuaded that we should seek disgorgement of ill-gotten gains and an admission of liability in these cases.”
Chairman Joseph Simons said the approach matched decades of FTC practice, but he announced a public workshop to consider whether the agency is using its legal tools effectively. That workshop took place in September 2019.
Pressure from Congress
In February 2019, Sens. Chris Murphy, Sherrod Brown and Tammy Baldwin wrote to the FTC asking for “specific insights about the commission’s decision to seek no consequences” in these cases, the New York Times reported in March.
Days earlier, a separate case had a different outcome. iSpring Water Systems paid a $110,000 penalty for breaking an earlier order.
FAQ
Did the companies pay fines?
No. The final orders bar false origin claims but include no money and no admission of wrongdoing.
Who dissented?
Commissioners Rohit Chopra and Rebecca Kelly Slaughter.
What did Chairman Simons propose?
A public workshop to review the FTC’s Made in USA enforcement tools.
Source & credit
Source: Annie Karni, The New York Times: “On ‘Made in America,’ Trump’s F.T.C. Appointees May Be Out of Step With Him”, April 17, 2019.
Also: Manatt, Phelps & Phillips: “‘Made in USA’ Settlement Divides FTC”; The New York Times via Honolulu Star-Advertiser: “Companies falsely labeled products ‘Made in U.S.A.’ Their financial penalty? $0”.