Would-be deceivers be warned: The Federal Trade Commission is cracking down on bogus Made-in-the-USA claims on products.
The FTC recently hit a Utah-based apparel company with a six-figure fine for falsely claiming its clothing was produced in the U.S.
The agency has filed a civil complaint against Ohio-based Adam J. Harmon and his companies, alleging that they lied during the COVID-19 pandemic by asserting personal protective equipment they had for sale was domestically made. In fact, the PPE was imported, authorities assert.
Now, the FTC has proposed an order to settle its complaint. It would compel Harmon and his companies, Axis LED Group LLC and ALG-Health LLC, to pay a civil penalty of $157,683 that would be due immediately. The complaint/proposed order has been referred to the Department of Justice.
“The defendants are also subject to a $2.8 million redress judgment, which is suspended due to their inability to pay,” the FTC said. “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.”
As COVID-19 gripped the United States in early 2020, Harmon began operating a business he called ALG-Health LLC, selling PPE such as masks, gowns and gloves, the FTC said.
Through social media posts, marketing materials and labels, Harmon claimed that the PPE items were manufactured in the United States. Authorities said that was a lie: The...
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