The FTC accused a Utah-based apparel company and its owner of replacing "Made in China" labels on their products with "Made in the USA" labels.
Sean Whalen and his company, Lions Not Sheep, were fined $211,335 by the FTC for making false claims about their products being made in the U.S.
Products were imported from other countries. In May, the FTC filed a complaint. The company is known for promoting the Second Amendment and Donald Trump through its clothing line, which it sells on Amazon and Etsy.
The FTC fined Whalen and his company for making bogus Made in USA claims.
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Any Made in USA claims must include a clear and visible disclosure about the extent to which the product contains foreign parts, ingredients or components.
The product needs to be last substantially transformed in the United States, its principal assembly takes place in the United States, and U.S. assembly operations are significant.
In October of 2020, Whalen published a video on social media with the title "Made in America!" and a Chinese flag, claiming that he could hide information about where his products were made by replacing their "Made in China" labels with "Made in the USA"
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The company replaced the tags of its products with "Made in USA" tags.
The director of the FTC's Bureau of Consumer Protection said that companies that slap fake Made in USA labels on imported goods are cheating their customers and undercutting honest businesses. Americans have the right to know where their clothes are made.
Whalen told USA Today that his company does not agree with the FTC's ruling, but it has no choice but to accept it and move on.
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