Notice2022-10748
Lions Not Sheep; Analysis of Proposed Consent Order To Aid Public Comment
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 19, 2022
Issuing agencies
Federal Trade Commission
Abstract
The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices. The attached Analysis of Proposed Consent Order to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent order--embodied in the consent agreement-- that would settle these allegations.
Full Text
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<title>Federal Register, Volume 87 Issue 97 (Thursday, May 19, 2022)</title>
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[Federal Register Volume 87, Number 97 (Thursday, May 19, 2022)]
[Notices]
[Pages 30495-30497]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-10748]
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FEDERAL TRADE COMMISSION
[File No. 222 3023]
Lions Not Sheep; Analysis of Proposed Consent Order To Aid Public
Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement; request for comment.
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SUMMARY: The consent agreement in this matter settles alleged
violations of federal law prohibiting unfair or deceptive acts or
practices. The attached Analysis of Proposed Consent Order to Aid
Public Comment describes both the allegations in the draft complaint
and the terms of the consent order--embodied in the consent agreement--
that would settle these allegations.
DATES: Comments must be received on or before June 21, 2022.
ADDRESSES: Interested parties may file comments online or on paper by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Please write ``Lions Not
Sheep; File No. 222 3023'' on your comment and file your comment online
at <a href="https://www.regulations.gov">https://www.regulations.gov</a> by following the instructions on the
web-based form. If you prefer to file your comment on paper, mail your
comment to the following address: Federal Trade Commission, Office of
the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex D),
Washington, DC 20580, or deliver your comment to the following address:
Federal Trade Commission, Office of the Secretary, Constitution Center,
400 7th Street SW, 5th Floor, Suite 5610 (Annex D), Washington, DC
20024.
FOR FURTHER INFORMATION CONTACT: Julia Solomon Ensor (202-326-2377),
Bureau of Consumer Protection, Federal Trade Commission, 600
Pennsylvania Avenue NW, Washington, DC 20580.
SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34,
notice is hereby given that the above-captioned consent agreement
containing a consent order to cease and desist, having been filed with
and accepted, subject to final approval, by the Commission, has been
placed on the public record for a period of thirty (30) days. The
following Analysis to Aid Public Comment describes the terms of the
consent agreement and the allegations in the complaint. An electronic
copy of the full text of the consent agreement package can be obtained
at <a href="https://www.ftc.gov/news-events/commission-actions">https://www.ftc.gov/news-events/commission-actions</a>.
[[Page 30496]]
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before June 21, 2022.
Write ``Lions Not Sheep; File No. 222 3023'' on your comment. Your
comment--including your name and your state--will be placed on the
public record of this proceeding, including, to the extent practicable,
on the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website.
Because of heightened security screening, postal mail addressed to
the Commission will be subject to delay. We strongly encourage you to
submit your comments online through the <a href="https://www.regulations.gov">https://www.regulations.gov</a>
website.
If you prefer to file your comment on paper, write ``Lions Not
Sheep; File No. 222 3023'' on your comment and on the envelope, and
mail your comment to the following address: Federal Trade Commission,
Office of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610
(Annex D), Washington, DC 20580.
Because your comment will be placed on the publicly accessible
website at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, you are solely responsible for
making sure your comment does not include any sensitive or confidential
information. In particular, your comment should not include sensitive
personal information, such as your or anyone else's Social Security
number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure your comment does not include
sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . is privileged or confidential''--as provided by
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2),
16 CFR 4.10(a)(2)--including competitively sensitive information such
as costs, sales statistics, inventories, formulas, patterns, devices,
manufacturing processes, or customer names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted on the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website--as legally
required by FTC Rule 4.9(b)--we cannot redact or remove your comment
from that website, unless you submit a confidentiality request that
meets the requirements for such treatment under FTC Rule 4.9(c), and
the General Counsel grants that request.
Visit the FTC website at <a href="http://www.ftc.gov">http://www.ftc.gov</a> to read this document
and the news release describing the proposed settlement. The FTC Act
and other laws the Commission administers permit the collection of
public comments to consider and use in this proceeding, as appropriate.
The Commission will consider all timely and responsive public comments
that it receives on or before June 21, 2022. For information on the
Commission's privacy policy, including routine uses permitted by the
Privacy Act, see <a href="https://www.ftc.gov/site-information/privacy-policy">https://www.ftc.gov/site-information/privacy-policy</a>.
Analysis of Proposed Consent Order To Aid Public Comment
The Federal Trade Commission (``FTC'' or ``Commission'') has
accepted, subject to final approval, an agreement containing a consent
order from Lions Not Sheep Apparel, LLC; Lions Not Sheep Products, LLC;
Lions Not Sheep Ventures, LLC; Lions Not Sheep LLC; and Sean Whalen
(``Respondents'').
The proposed consent order has been placed on the public record for
thirty (30) days for receipt of comments by interested persons.
Comments received during this period will become part of the public
record. After thirty (30) days, the Commission will again review the
agreement and the comments received and decide whether it should
withdraw from the agreement or make final the agreement's proposed
order.
This matter involves Respondents' advertising of hats, accessories,
and apparel as ``Made in USA.'' According to the FTC's complaint,
Respondents represented that hats and non-apparel accessories were all
or virtually all made in the United States. However, the complaint
alleges that, in numerous instances, those hats and non-apparel
accessories are wholly imported or contain significant imported
content. Based on the foregoing, the complaint alleges Respondents
engaged in deceptive acts or practices in violation of Section 5(a) of
the FTC Act.
The complaint further alleges Respondents violated the Textile
Fiber Products Identification Act by (1) advertising articles of
wearing apparel as of U.S. origin despite the fact they are wholly
imported or incorporate significant imported materials, and (2)
removing tags containing information required pursuant to the Textile
Fiber Products Identification Act and replacing those tags with false
country-of-origin designations.
The proposed consent order contains provisions designed to prevent
Respondents from engaging in similar acts and practices in the future.
Consistent with the FTC's Made in USA Labeling Rule, 16 CFR part 323,
and Enforcement Policy Statement on U.S.-Origin Claims, Part I
prohibits Respondents from making U.S.-origin claims for their products
unless: (1) The final assembly or processing of the product occurs in
the United States, all significant processing that goes into the
product occurs in the United States, and all or virtually all
ingredients or components of the product are made and sourced in the
United States; (2) a clear and conspicuous qualification appears
immediately adjacent to the representation that accurately conveys the
extent to which the product contains foreign parts, ingredients or
components, and/or processing; or (3) for a claim that a product is
assembled in the United States, the product is last substantially
transformed in the United States, the product's principal assembly
takes place in the United States, and United States assembly operations
are substantial.
Part II prohibits Respondents from making any representation about
a product or service, including any representation regarding country of
origin, unless the representation is not misleading and Respondents
have a reasonable basis substantiating it.
Part III requires Respondents to make certain disclosures about the
country of origin of any product subject to the Textile Fiber Products
Identification Act.
Parts IV through VI are monetary provisions. Part IV imposes a
judgment of $211,335. Part V includes additional monetary provisions
relating to collections. Part VI requires Respondents to provide
sufficient customer information to enable the Commission to administer
consumer redress, if appropriate.
Part VII is a notice provision requiring Respondents to identify
and notify certain consumers of the FTC's action within 30 days after
the issuance of the order, or within 30 days of the consumer's
identification, if identified later. Respondents are also required to
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submit reports regarding their notification program.
Parts VIII through XI are reporting and compliance provisions. Part
VIII requires Respondents to acknowledge receipt of the order, to
provide a copy of the order to certain current and future principals,
officers, directors, and employees, and to obtain an acknowledgement
from each such person that they have received a copy of the order. Part
IX requires Respondents to file a compliance report within one year
after the order becomes final and to notify the Commission within 14
days of certain changes that would affect compliance with the order.
Part X requires Respondents to maintain certain records, including
records necessary to demonstrate compliance with the order. Part XI
requires Respondents to submit additional compliance reports when
requested by the Commission and to permit the Commission or its
representatives to interview Respondents' personnel.
Finally, Part XII is a ``sunset'' provision, terminating the order
after twenty (20) years, with certain exceptions.
The purpose of this analysis is to aid public comment on the
proposed order. It is not intended to constitute an official
interpretation of the proposed order or to modify its terms in any way.
By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2022-10748 Filed 5-18-22; 8:45 am]
BILLING CODE 6750-01-P
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</html>Indexed from Federal Register on May 19, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.