The Federal Trade Commission (FTC) continues to aggressively enforce its Made in USA Labeling Rule and Section 5 of the FTC Act and seek significant monetary penalties, this time in the market for motocross and all-terrain vehicle (ATV) parts.
On April 18, 2023, the FTC announced an Agreement Containing Consent Order (Proposed Order) against Cycra Inc. and its officer, Chad James. The Proposed Order and associated complaint allege that Cycra and James falsely claimed that Cycra’s products were manufactured in the United States when the company had imported parts and accessories from Asia and Europe in violation of the labeling rule and Section 5 of the FTC Act.
Cycra sells and distributes motocross, motorcycle, and ATV parts. The Proposed Order would prohibit Cycra and James from making deceptive claims about its products being Made in USA and impose a monetary judgment of $872,577. The judgment would be partially suspended based on an inability to pay, with Cycra and James required to pay $221,385.66.
The Proposed Order also would require Cycra and James to notify all consumers who purchased any Cycra product imported from Taiwan and labeled as “Made in USA” or “USA” on or after March 1, 2019, that the FTC is suing Cycra and James for making false claims and that the product the consumer purchased was imported from Taiwan.
The FTC’s complaint alleges that, from 2019 until at least May 2022, Cycra made claims on its product packaging, social media, and website that its...
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