The Federal Trade Commission has recently taken action against motocross and ATV parts maker Cycra and its officer, Chad James, for falsely claiming that the company’s products were manufactured in the U.S. The FTC’s proposed order would stop Cycra and James from making deceptive claims about products being “Made in USA” and require them to pay a monetary judgment.
“False ‘Made in USA’ claims hurt consumers and honest businesses,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “We will continue to work with our colleagues at U.S. Customs and Border Protection and across the federal government to hold bad actors accountable.”
According to the FTC’s complaint, Cycra has made claims that its products are made in the U.S. on its website, social media, and product packaging from 2019 until at least May, 2022. The claims included a web banner saying “Proudly designed, developed and manufactured in Lexington, North Carolina,” and product labels featuring the American flag.
In fact, the complaint charges, Cycra regularly imported parts from Asia and Europe for its products, and in two separate instances, U.S. Customs and Border Protection officers discovered, in shipments from Taiwan, assembled products that were already labeled or ready to be labeled as being “Made in USA” in shipments from Taiwan.
The FTC’s order against Cycra and James, which the defendants have agreed to, includes a number of requirements about the claims they make:
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