83 FR 12192 - Nectar Brand LLC; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

Federal Register Volume 83, Issue 54 (March 20, 2018)

The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices. The attached Analysis 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.

[Federal Register Volume 83, Number 54 (Tuesday, March 20, 2018)]
[Notices]
[Pages 12192-12193]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-05613]



[[Page 12192]]

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FEDERAL TRADE COMMISSION

[File No. 182 3038]


Nectar Brand LLC; Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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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 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 April 12, 2018.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write: ``In the Matter of 
Nectar Brand LLC, a limited liability company, also doing business as 
Nectar Sleep; DreamCloud, LLC; and DreamCloud Brand LLC'' on your 
comment, and file your comment online at https://ftcpublic.commentworks.com/ftc/nectarbrandconsent by following the 
instructions on the web-based form. If you prefer to file your comment 
on paper, write ``In the Matter of Nectar Brand LLC, a limited 
liability company, also doing business as Nectar Sleep; DreamCloud, 
LLC; and DreamCloud Brand LLC'' 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, 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) and 
Crystal Ostrum (202-326-3405), Bureau of Consumer Protection, 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 
from the FTC Home Page (for March 13, 2018), on the World Wide Web, at 
https://www.ftc.gov/news-events/commission-actions.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before April 12, 2018. 
Write ``In the Matter of Nectar Brand LLC, a limited liability company, 
also doing business as Nectar Sleep; DreamCloud, LLC; and DreamCloud 
Brand LLC'' 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 public Commission website, 
at https://www.ftc.gov/policy/public-comments.
    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/nectarbrandconsent by following the instructions on the web-based 
form. If this Notice appears at http://www.regulations.gov/#!home, you 
also may file a comment through that website.
    If you prefer to file your comment on paper, write ``In the Matter 
of Nectar Brand LLC, a limited liability company, also doing business 
as Nectar Sleep; DreamCloud, LLC; and DreamCloud Brand LLC'' 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, 
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. If 
possible, submit your paper comment to the Commission by courier or 
overnight service.
    Because your comment will be placed on the publicly accessible FTC 
website at https://www.ftc.gov, you are solely responsible for making 
sure that your comment does not include any sensitive or confidential 
information. In particular, your comment should not include any 
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 that your comment does not include 
any 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 in particular 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 public FTC website--as legally required by FTC Rule 
4.9(b)--we cannot redact or remove your comment from the FTC 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 http://www.ftc.gov to read this Notice and 
the news release describing it. The FTC Act and other laws that 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 April 12, 2018. For information on the 
Commission's privacy policy, including routine uses permitted by the 
Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission (``FTC'' or ``Commission'') has 
accepted, subject to final approval, an agreement

[[Page 12193]]

containing a consent order from Nectar Brand LLC, also d/b/a Nectar 
Sleep; Dreamcloud, LLC; and Dreamcloud Brand LLC (``respondent'').
    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 will decide whether it should 
withdraw from the agreement or make final the agreement's proposed 
order.
    This matter involves respondent's marketing, sale, and distribution 
of mattresses with claims that the products are assembled in the United 
States.
    According to the FTC's complaint, respondent represented that its 
products are ``assembled in the USA.'' In fact, the respondent's 
mattresses are wholly imported. Therefore, this representation was 
false or misleading. Based on the foregoing, the complaint alleges that 
respondent engaged in deceptive acts or practices in violation of 
Section 5(a) of the FTC Act.
    The proposed consent order contains provisions designed to prevent 
respondent from engaging in similar acts and practices in the future. 
Consistent with the FTC's Enforcement Policy Statement on U.S. Origin 
Claims, Part I prohibits respondent from making U.S.-origin claims for 
their products unless either: (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 respondent from making any country-of-origin 
claim about a product or service unless the claim is true, not 
misleading, and respondent has a reasonable basis substantiating the 
representation.
    Parts III through V are reporting and compliance provisions. Part 
III requires the filing of compliance reports within one year after the 
order becomes final and within 14 days of any change that would affect 
compliance with the order. Part IV requires respondent to maintain 
certain records, including records necessary to demonstrate compliance 
with the order. Part V requires respondent to submit additional 
compliance reports when requested by the Commission and to permit the 
Commission or its representatives to interview respondent's personnel.
    Finally, Part VI 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.
Donald S. Clark,
Secretary.
[FR Doc. 2018-05613 Filed 3-19-18; 8:45 am]
BILLING CODE 6750-01-P