The Federal Trade Commission is accepting comments through Sept. 26 on a proposed consent order to settle charges that a company labeled and advertised mattress pads for truck bunks as made in the U.S. when in numerous instances they were wholly imported from China. Such actions would be in violation of the Textile Fiber Products Identification Act and the Textile Fiber Rule.
The proposed consent order would:
- impose a judgment of $815,809 but fully suspend that judgment based on the company’s sworn financial statements;
- prohibit the company from making U.S.-origin claims for its products unless (1) the final assembly or processing of the product occurs in the U.S., all significant processing that goes into the product occurs in the U.S., and all or virtually all ingredients or components of the product are made and sourced in the U.S., (2) a clear and conspicuous qualification appears immediately adjacent to the representation that accurately conveys the extent to which the product contains foreign parts, ingredients or components, and/or processing, or (3) for a claim that a product is assembled in the U.S., the product is last substantially transformed in the U.S., its principal assembly takes place in the U.S., and U.S. assembly operations are substantial;
- require the company to file a compliance report within one year and notify the FTC within 14 days of certain changes that would affect compliance with the order; and
- require the company to maintain certain records, including those necessary to demonstrate compliance with the order.
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