Notice2023-26945
ExotoUSA LLC-Old Southern Brass; 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
December 8, 2023
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 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 88 Issue 235 (Friday, December 8, 2023)</title>
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[Federal Register Volume 88, Number 235 (Friday, December 8, 2023)]
[Notices]
[Pages 85619-85621]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-26945]
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FEDERAL TRADE COMMISSION
[File No. 232 3035]
ExotoUSA LLC--Old Southern Brass; 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 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 January 8, 2024.
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 ``ExotoUSA LLC--
Old Southern Brass; File No. 232 3035'' 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,
[[Page 85620]]
600 Pennsylvania Avenue NW, Suite CC-5610 (Annex V), Washington, DC
20580.
FOR FURTHER INFORMATION CONTACT: Thomas Harris (202-326-3620),
Attorney, Division of Marketing Practices, Bureau of Consumer
Protection, Federal Trade Commission, 600 Pennsylvania Ave. 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 section 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 January 8, 2024.
Write ``ExotoUSA LLC--Old Southern Brass File No. 232 3035'' 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 ``ExotoUSA
LLC--Old Southern Brass File No. 232 3035'' 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 V), 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 section
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 section 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 section 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 section 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 section 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
it receives on or before January 8, 2024. 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 ExotoUSA LLC, d/b/a Old Southern Brass, and Austin Oliver
(``Respondents'').
The proposed consent order has been placed on the public record for
30 days for receipt of comments by interested persons. Comments
received during this period will become part of the public record.
After 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 glassware, mugs, pens, and other
novelty items as made in the United States and claims of association
with the U.S. military.
According to the FTC's complaint, Respondents (1) deceptively
advertised certain products as made in the United States even though,
in numerous instances, they were wholly imported, and (2) falsely
claimed ExotoUSA LLC is veteran-operated, donates 10% of sales to
military service charities, and incorporates bullets or bullet casings
fired by the U.S. military into its products. Based on the foregoing,
the complaint alleges Respondents violated section 5 of the Federal
Trade Commission Act, 15 U.S.C. 45(a).
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, 62 FR
63756, 63768 (Dec. 2, 1997), 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,
including any claim about the country of origin of a product or service
or any claim Respondents have an association with the U.S. military,
unless the
[[Page 85621]]
representation is not misleading and Respondents have a reasonable
basis substantiating it.
Parts III through V are monetary provisions. Part III imposes a
judgment of $4,572,137.66 and partially suspends that judgment on the
basis of 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 is immediately due.
Part IV includes additional monetary provisions relating to
collections. Part V requires Respondents to provide sufficient customer
information to enable the Commission to administer consumer redress, if
appropriate.
Part VI 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 VII through X are reporting and compliance provisions. Part
VII 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 VIII 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 IX requires Respondents to maintain certain records, including
records necessary to demonstrate compliance with the order. Part X
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 XI
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 complaint or proposed order, or to modify in any
way the proposed order's terms.
By direction of the Commission.
Joel Christie,
Acting Secretary.
[FR Doc. 2023-26945 Filed 12-7-23; 8:45 am]
BILLING CODE 6750-01-P
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</html>Indexed from Federal Register on December 8, 2023.
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