Electrowarmth Products, LLC; Analysis of Proposed Consent Order To Aid Public Comment
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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.
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<title>Federal Register, Volume 87 Issue 164 (Thursday, August 25, 2022)</title>
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[Federal Register Volume 87, Number 164 (Thursday, August 25, 2022)]
[Notices]
[Pages 52385-52386]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-18313]
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FEDERAL TRADE COMMISSION
[File No. 222 3096]
Electrowarmth Products, LLC; 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 September 26, 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 ``Electrowarmth
Products, LLC; File No. 222 3096'' 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, please 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.
FOR FURTHER INFORMATION CONTACT: Julia 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 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>.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before September 26,
2022. Write ``Electrowarmth Products, LLC; File No. 222 3096'' 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 ``Electrowarmth
Products, LLC; File No. 222 3096'' 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 September 26, 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 Electrowarmth Products, LLC and Daniel W. Grindle
(``Respondents'').
The proposed consent order has been placed on the public record for
30 days for receipt of comments from interested persons. Comments
received during this period will become part of the public record.
After 30 days, the Commission
[[Page 52386]]
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 textile fiber
products as ``Made in USA.'' According to the FTC's complaint,
Respondents labeled and advertised ``bunk warmer'' mattress pads for
truck bunks as made in the United States. The complaint alleges,
however, that in numerous instances those bunk warmer pads were wholly
imported from China. Based on the foregoing, the complaint alleges
Respondents violated sections 70a and 70b of the Textile Fiber Products
Identification Act, 15 U.S.C. 70a and 70b, and sections 303.33 and
303.34 of the Textile Fiber Rule, 16 CFR 303.33 and 303.34.
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 its Enforcement Policy Statement on U.S.-Origin Claims, Part I of
the proposed order 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
the country of origin of a product or service, 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 $815,809, and fully suspends that judgment based on the
Respondents' sworn financial statements. If the Commission concludes
any Respondent made a material misrepresentation or omission in that
Respondent's sworn financial statement, the suspension as to that
Respondent is lifted and the full judgment immediately due. 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
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.
Joel Christie,
Acting Secretary.
[FR Doc. 2022-18313 Filed 8-24-22; 8:45 am]
BILLING CODE 6750-01-P
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