PPE Companies to Settle With FTC Over Allegations of 'Made in USA' Deception
The CEO of two personal protective equipment companies will pay more than $157,000 in civil penalties to settle a lawsuit referred recently to DOJ over false "Made in USA" claims, the Federal Trade Commission said in a news release. FTC…
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alleged that Adam Harmon and two companies he controlled, Axis LED Group and ALG-Health, deceptively said in marketing materials and labels that the products were made in the U.S. (United States v. Axis LED Group, et al., N.Dist. Ohio # 3:22-01389). "Harmon and ALG made numerous false and misleading claims that their PPE products were all or virtually all made in the United States, even though the products were wholly imported, or incorporated significant imported materials or subcomponents," the agency said. "These claims and other false statements -- including that the defendants’ products were U.S.-origin respirators, certified by the National Institute for Occupational Safety (NIOSH) -- violated the COVID-19 Consumer Protection Act." Under a proposed settlement order, Harmon and the companies must stop with the deceptive origin claims and substantiate all Made in USA language. Harmon and the companies also must "pay a $157,683.37 civil penalty, which is due immediately," FTC said. "The defendants are also subject to a $2.8 million redress judgment, which is suspended due to their inability to pay. Should the FTC discover that the defendants have misstated the value of any assets or failed to disclose them, the agency will "seek to have the suspension lifted and the full judgment due immediately."