The Federal Trade Commission announced that it reached a settlement with Axis LED Group and ALG-Health, as well as their owner, resolving allegations that the companies made false U.S.-origin claims in connection with their marketing of personal protective equipment and other products. As part of the settlement, the defendants agreed to pay more than $157,000 in civil penalties, as well as $2.8 million in consumer redress (which was suspended due to their inability to pay).
In announcing the settlement, Sam Levine, the Director of the FTC's Bureau of Consumer Protection, said, "ALG and its CEO slapped the Made in USA label on masks that were made overseas, and now they’re paying the price. As Americans struggle to obtain safe, authentic personal protective equipment, the Commission will use every tool we have to root out false claims and phony labels."
In the complaint, the FTC charged the defendants with falsely marketing lighting products as "made" in the United States, even though they included significant Chinese components. In addition, the FTC alleged that the defendants also falsely marketed these products as "assembled" in the United States, even when the products were wholly imported from China.
The FTC also charged the defendants will falsely marketing masks, gloves, and other products as being made in the United States, even though they were often wholly imported from China. And, the FTC alleged that "Defendants have represented, expressly or by implication,...
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