83_FR_47342 83 FR 47161 - Patriot Puck; Analysis To Aid Public Comment

83 FR 47161 - Patriot Puck; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

Federal Register Volume 83, Issue 181 (September 18, 2018)

Page Range47161-47166
FR Document2018-20272

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 Issue 181 (Tuesday, September 18, 2018)
[Federal Register Volume 83, Number 181 (Tuesday, September 18, 2018)]
[Notices]
[Pages 47161-47166]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-20272]


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FEDERAL TRADE COMMISSION

[File No. 182 3113]


Patriot Puck; 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 October 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: ``Patriot Puck'' on 
your comment, and file your comment online at https://ftcpublic.commentworks.com/ftc/patriotpuckconsent by following the 
instructions on the web-based form. If you prefer to file your comment 
on paper, write ``Patriot Puck; File No. 1823113'' 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: 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) or 
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

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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 September 12, 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 October 12, 
2018. Write ``Patriot Puck; File No. 1823113'' 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/patriotpuckconsent 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 ``Patriot Puck; 
File No. 1823113'' 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 October 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 containing a consent 
order from Underground Sports Inc., d/b/a Patriot Puck; Hockey 
Underground Inc., d/b/a Patriot Puck; Ipuck Inc., d/b/a Patriot Puck; 
IPuck Hockey Inc., d/b/a Patriot Puck; and George Statler III 
(``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 will decide whether it should 
withdraw from the agreement or make final the agreement's proposed 
order.
    This matter involves Respondents' marketing, sale, and distribution 
of hockey pucks with claims that the pucks are made in the United 
States.
    According to the FTC's complaint, Respondents represented that all 
of their hockey pucks are all or virtually all made in the United 
States. In fact, Respondents' hockey pucks are wholly imported from 
China. Specifically, since January of 2016, Respondents have imported 
74,411 kilograms of hockey pucks, which is the equivalent of more than 
400,000 standard-weight pucks. Based on the foregoing, the complaint 
alleges that Respondents 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 
Respondents 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 Respondents 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 Respondents from making any country-of-origin 
claim about a product or service unless the claim is true, not 
misleading, and

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Respondents have a reasonable basis substantiating the representation.
    Parts III through VI are reporting and compliance provisions. Part 
III 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 
IV requires each Respondent 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 V requires Respondents to maintain certain records, including 
records necessary to demonstrate compliance with the order. Part VI 
requires Respondents 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 VII 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, Commissioner Chopra dissenting.
Donald S. Clark,
Secretary.

Concurring Statement of Commissioner Rebecca Kelly Slaughter, in Which 
Chairman Joe Simons Joins

    When companies falsely claim that their products are made in the 
U.S.A., they take advantage of consumers who choose to spend their 
dollars supporting domestic products and the companies who expend 
resources in order to make the claim proudly and truthfully. Today, the 
Commission is announcing three enforcement actions \1\ targeting 
companies and an individual who we allege falsely claimed their 
products were made in the U.S.A. in violation of Section 5 of the FTC 
Act. In Patriot Puck, respondent George Statler III and his companies 
marketed hockey pucks imported from China as ``Made in America'' and 
``The only American Made Hockey Puck!'' The Nectar Sleep respondents 
included the statement ``Designed and Assembled in the USA'' in product 
descriptions for mattresses wholly imported from China. And in 
Sandpiper/PiperGear, respondents marketed imported backpacks and 
wallets on websites claiming ``Featuring American Made Products'' and 
shipped imported wallets with cards labeled ``American Made.'' The 
Commission's complaints allege that these claims were plainly false and 
the respondents have all agreed to strong administrative consent 
orders.
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    \1\ To date, the Commission has initiated 25 enforcement actions 
arising from misleading U.S.-origin claims, targeting entities that 
engage in intentional deception or refuse to come into prompt 
compliance. FTC staff also works extensively with companies to 
achieve compliance in this area, issuing more than 130 closing 
letters addressing potential U.S.-origin claims. These letters 
highlight that where companies make errors or potentially deceptive 
claims to consumers, Commission staff works with them to quickly 
come into compliance. In addition to enforcement actions and 
compliance counseling, the Commission's program to protect consumers 
from deceptive U.S.-origin claims involves significant business 
education efforts. In 1997, the Commission issued an Enforcement 
Policy Statement on U.S. Origin Claims that explains the types of 
U.S.-origin claims that can be made and the substantiation needed to 
support them. Commission staff has also issued comprehensive 
guidance, press releases and blogs in this area to promote 
compliance.
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    Each of the administrative consent orders prohibits the respondents 
from making these types of claims in the future \2\ and requires the 
respondents to engage in recordkeeping and reporting that will assist 
the FTC in monitoring compliance.\3\ Any violation of these orders can 
result in a civil penalty of over $40,000 per violation.\4\ There is 
evidence that these potential penalties have served as powerful 
deterrents: to date the FTC has only had cause to initiate one contempt 
proceeding \5\ against the more than twenty prior respondents in cases 
involving U.S.-origin claims.
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    \2\ Specifically, the orders prohibit respondents from making 
deceptive unqualified U.S.-origin claims about their products and 
lay out the type of substantiation required to make truthful claims. 
The orders also govern the manner and type of qualification needed 
to make a lawful qualified claim regarding U.S.-origin. The orders 
further prohibit respondents from making any country-of-origin claim 
about a product or service unless the claim is true, not misleading, 
and respondents have a reasonable basis substantiating the 
representation.
    \3\ Each of the orders requires the 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. Respondents are also 
required to maintain certain records, including records necessary to 
demonstrate compliance with the order. The orders also require 
respondents to submit additional compliance reports when requested 
by the Commission and to permit the Commission or its 
representatives to interview respondents' personnel. The orders 
remain in effect for 20 years.
    \4\ Outside of specific rules, the FTC does not have authority 
to seek civil penalties for violations of Section 5 of the FTC Act. 
The FTC does have authority to seek civil penalties for any 
violations of its administrative orders. See 15 U.S.C. 45(l) and 16 
CFR 1.98(d) (2018).
    \5\ See https://www.ftc.gov/news-events/press-releases/2006/06/ftc-alleges-stanley-made-false-made-usa-claims-about-its-tools 
(announcing settlement with Stanley Works that imposed a $205,000 
civil penalty for violating prior order regarding U.S.-origin 
claims).
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    In this area, administrative consent orders securing permanent 
injunctive relief buttressed by the threat of significant civil 
penalties have been largely successful in keeping former violators on 
the straight and narrow and have no doubt served as a warning to others 
that false claims will be identified and pursued. Therefore, we are 
voting in support of the relief set forth in the final and proposed 
administrative orders announced today.
    We write separately to highlight the possibility that the FTC can 
further maximize its enforcement reach, in all areas, through strategic 
use of additional remedies. For example, in the U.S.-origin claim 
context, there may be cases in which consumers paid a clear premium for 
a product marketed as ``Made in the U.S.A.'' or made their purchasing 
decision in part based on perceived quality, safety, health or 
environmental benefits tied to a U.S.-origin claim.\6\ In such 
instances, additional remedies such as monetary relief or notice to 
consumers may be warranted. Requiring law violators to provide notice 
to consumers identifying the deceptive claim can help mitigate 
individual consumer injury--an informed consumer would have the option 
to seek a refund, or, at the very least, stop using the product.
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    \6\ Of the three cases the FTC is announcing today, we note that 
consideration of additional remedies such as notice could have been 
of particular value in the Nectar Sleep matter, which involved U.S.-
origin claims about mattresses. The fact that purchasers of Nectar 
Sleep mattresses can seek a refund for any reason for 365 days after 
their original purchase, https://www.nectarsleep.com/p/returns/, and 
that purchasers received mattresses with accurate country-of-origin 
labels, contributed to our decision to vote in favor of the final 
Nectar Sleep order.
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    The Commission has already begun a broad review of whether we are 
using every available remedy as effectively as possible to fairly and 
efficiently pursue vigorous enforcement of our consumer protection and 
competition laws. If we find that there are new or infrequently applied 
remedies that we should be seeking more often, the Commission will act 
accordingly--and, where appropriate, signal to the public how we intend 
to approach enforcement. In our view, a thoughtful review and forward-
looking plan is a more effective and efficient use of Commission 
resources than re-opening and re-litigating the cases before us 
today.\7\
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    \7\ It is worth noting that all of the cases announced today 
began well before the current complement of Commissioners were 
instated, and therefore before staff could reasonably have been 
expected to anticipate our particular priorities and views on 
enforcement. To renegotiate these settlements at this point, after 
litigation strategy was developed and executed, would require 
substantial investment of staff time and effort and diversion of 
resources from other important cases. A forward-looking set of 
remedy priorities will help staff develop litigation strategy in an 
efficient way.

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[[Page 47164]]

Statement of Commissioner Rohit Chopra

Question Presented

    Are no-money, no-fault settlements adequate to remedy serious 
violations of the FTC's ``Made in USA'' standard?

Summary

     Sellers gain a competitive advantage when they falsely 
market a product as Made in USA, especially when this claim is closely 
tied to the development of the product's brand.
     Third-party analysis suggests that Americans are often 
willing to pay significantly more for American-made goods compared to 
those made in China. Several of the matters under consideration by the 
Commission involve Made-in-USA fraud relating to products made in 
China.
     The Commission should modify its approach to resolving 
serious Made-in-USA fraud by seeking more tailored remedies that could 
include restitution, disgorgement, notice, and admissions of 
wrongdoing, based on the facts and circumstances of each matter.

Analysis and Discussion

The Power of Branding and Made in USA
    While brand identity has historically been a major focus in markets 
for luxury goods, today it plays a key role in all segments of our 
economy. As advanced manufacturing and global supply chains challenge 
firms to find new ways to lower operating costs, consumer goods 
industries (including everything from apparel to packaged goods) have 
focused intensely on building and cultivating their brands as a way to 
drive up margins through price and volume enhancements.
    Branding is distinct from marketing and advertising. A successful 
brand is one that creates a clear identity that goes beyond specific 
product attributes. A brand identity connects with a consumer's values, 
aspirations, and sense of self.
    A Made-in-USA claim can serve as a key element of a product's brand 
that communicates quality, durability, authenticity, and safety, among 
other attributes. Not only can it be a signal about specific product 
attributes but it can also contribute to the development of a brand 
identity that connotes a set of values, such as fair labor practices, 
to consumers.
    Made-in-USA branding can also be used to fraudulently conceal 
countries of origin that may cause concerns for consumers. For example, 
in recent years, regulators have investigated serious health and safety 
problems with pet food \1\ and drywall \2\ imported from China, and the 
OECD estimates that China is the source of the vast majority of 
counterfeit goods imported to the U.S.\3\ Against this backdrop, 
slapping a ``Made-in-USA'' label on a good made abroad can be its own 
form of counterfeiting, replacing an unpopular attribute with one 
connoting quality, safety, and authenticity.
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    \1\ Food & Drug Admin., Melanine Pet Food Recall of 2007 (May 
2007), https://www.fda.gov/animalveterinary/safetyhealth/recallswithdrawals/ucm129575.htm.
    \2\ Fed. Trade Comm'n, Tests for Defective Drywall (Dec. 2009), 
https://www.consumer.ftc.gov/articles/0124-tests-defective-drywall.
    \3\ Global trade in fake goods worth nearly half a trillion 
dollars a year, Org. for Econ. Co-Operation and Dev. (Apr. 18, 
2016), http://www.oecd.org/industry/global-trade-in-fake-goods-worth-nearly-half-a-trillion-dollars-a-year.htm.
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    In many cases, Americans are actually willing to pay a premium for 
goods that are made in our country, especially compared to those made 
in China. A 2012 survey by the Boston Consulting Group shows that more 
than 80% of Americans express a willingness to pay more for made-in-USA 
products,\4\ which is consistent with other surveys.\5\
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    \4\ Made in America, Again: Understanding the value of 'Made in 
the USA', The Boston Consulting Group (Nov. 2012) [Hereinafter Made 
in America, Again].
    \5\ See, e.g., Made in America: Most Americans love the idea of 
buying a U.S.-made product instead of an import. But sometimes it's 
hard to tell what's real and what's not, Consumer Reports (May 21, 
2015), https://www.consumerreports.org/cro/magazine/2015/05/made-in-america/index.htm [hereinafter Made in America] (reporting on a 
national survey finding that 60%+ of Americans would pay a 10% 
premium for Made-in-USA goods); Price of patriotism: How much extra 
are you willing to pay for a product that's made in America?, 
Reuters (July 18, 2017), http://fingfx.thomsonreuters.com/gfx/rngs/USA-BUYAMERICAN-POLL/01005017035/index.html (reporting on a national 
survey finding that 60%+ of Americans would pay a premium of 5% or 
more). Of course, surveys reveal only Americans' stated willingness 
to pay a premium, not their actual buying behavior. But assuming 
Americans will pay no premium runs contrary to the available 
evidence, and firms' aggressive Made-in-USA branding shows they 
clearly see it as advantageous.
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    Importantly, however, price premium does not always accurately 
capture the harm caused by Made-in-USA fraud. Especially in markets for 
commodity goods where consumers may be particularly price-sensitive, 
firms may make false claims to distinguish their brand or conceal 
unpopular countries of origin.
    Whatever its purpose, cheating distorts markets in fundamental 
ways. It rips off Americans who prefer buying domestic goods. It also 
punishes firms that may bear higher costs to produce goods here, yet 
must compete on price or branding with firms that cheat. Finally, 
widespread deception sows doubt \6\ about the veracity of Made-in-USA 
claims, which may reduce the claim's value and discourage domestic 
manufacturing.
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    \6\ See Made in America, supra note 5 (reporting on a national 
survey finding that 23% of Americans lack trust in ``Made in 
America'' labels).
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Backpacks, Hockey Pucks, and Mattresses
    Today, the Commission is voting on three cases involving Made-in-
USA fraud.\7\ The conduct of each of these companies was brazen and 
deceitful. In my view, each respondent firm harmed both consumers and 
honest competitors.
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    \7\ Claiming falsely that a product is Made in USA violates 
Section 5 of the FTC Act. Although the FTC brought a Made-in-USA 
case as early as 1940, Congress amended the FTC Act in 1994 to state 
explicitly that Made-in-USA labeling must be consistent with FTC 
decisions and orders. See 15 U.S.C. 45a.
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    In the Sandpiper and Patriot Puck matters, the evidence suggests 
that the Made-in-USA claim was a critical component of the companies' 
brand identities. In the Nectar Sleep matter, the false Made-in-USA 
claim may have been asserted to convey health or safety benefits.
    Sandpiper/PiperGear USA: Sandpiper/PiperGear USA (``Sandpiper'') 
built its brand of military-themed backpacks and gear on patriotism. As 
detailed in the FTC's complaint, the company boasted in its promotional 
materials about its ``US manufacturing,'' inserted ``American Made'' 
labels into products, and included the hashtag ``#madeinusa'' alongside 
social media posts.\8\ The company sold thousands of backpacks on 
American military bases overseas.
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    \8\ Compl. at ]] 6-7.
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    In reality, Sandpiper imported the vast majority \9\ of its 
products from China or Mexico, a fact the firm actively sought to hide 
through its aggressive Made-in-USA branding.
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    \9\ According to the Complaint, more than 95% of Sandpiper's 
products are imported as finished goods, while approximately 80% of 
PiperGear's products are either imported as finished goods or 
contain significant imported components. Id. at ] 7.
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    Patriot Puck: Hockey pucks typically are manufactured to meet 
certain weight, thickness, and diameter specifications. These are 
commodity goods. Purchasers largely see competing pucks that boast 
similar specifications, so brand positioning can be especially salient.

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    Patriot Puck positioned its brand as the all-American alternative 
to imported pucks. The company literally wrapped its pucks in the flag, 
embossing each one with an image of an American flag. To drive home the 
point, the firm claimed its pucks were ``Proudly Made in the USA,'' 
``MADE IN AMERICA,'' ``100% Made in the USA!,'' and ``100% American 
Made!'' The firm even claimed it made ``The Only American Made Hockey 
Puck!'' \10\
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    \10\ Compl. at ] 9.
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    In reality, Patriot Puck imported all of its pucks from China.\11\
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    \11\ The Commission has wisely named George Statler III, who 
operated the company, in its Complaint.
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    That Patriot Puck priced its pucks similarly to other firms 
illustrates why sticker price premium alone is a poor proxy for the 
harm caused by Made-in-USA fraud, especially in markets for commodity 
goods. Hockey is closely associated with international competition, and 
Patriot Puck's claim to offer the ``only'' puck made in America was a 
clear effort to create a brand identity that would distinguish its 
pucks from the competition. Moreover, by pricing its pucks similarly to 
its competitors, Patriot Puck led consumers to believe they were 
getting a great deal on American-made hockey pucks, when in fact they 
were overpaying for pucks made in China.\12\
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    \12\ Surveys show that Americans will pay a premium for U.S.-
made sporting goods relative to those made in China, meaning they 
effectively discount goods made in China. Made in America, Again at 
1. And Americans may be particularly averse to buying patriotic-
themed goods made in China. See, e.g., Matt Brooks, US Olympic 
uniforms spark fury in Congress, Wash. Post (July 13, 2012), https://www.washingtonpost.com/blogs/2012-heavy-medal-london/post/us-olympic-uniforms-spark-fury-in-congress/2012/07/13/gJQABvJmhW_blog.html?utm_term=.3d96e391f1dd.
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    Nectar Sleep: Nectar Sleep is a direct-to-consumer online mattress 
firm founded by Silicon Valley entrepreneurs. According to a CNBC 
profile of the company, Nectar competes with more than 200 firms to 
capture a slice of the $15 billion mattress market.
    Nectar mattresses are made in China, which may be a negative 
attribute for consumers who have health or safety concerns about 
Chinese-made mattresses.\13\ Perhaps for this reason, the company 
falsely represented to consumers that its mattresses were assembled in 
the U.S.
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    \13\ Such concerns may be tied to recent recalls of Chinese-made 
mattresses and bedding, and may be partially reflected in the 
premium Americans are willing to pay for U.S.-made furniture over 
furniture made in China. See Made in America, Again at 6. In fact, 
numerous consumer reviews specifically focus on comparing U.S.-made 
mattresses.
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    Nectar's conduct had clear consequences. Competitors who actually 
made mattresses domestically were undercut, and consumers looking for 
U.S.-made mattresses--possibly for health or safety reasons--got ripped 
off. Further, Nectar may continue to profit from the lingering 
misperception that its mattresses are made in the U.S.
Addressing Made-in-USA Fraud Going Forward
    Most FTC resolutions of Made-in-USA violations have resulted in 
voluntary compliance measures \14\ or cease-and-desist orders. Indeed, 
none of the three settlements approved today includes monetary relief, 
notice to consumers, or any admission of wrongdoing.
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    \14\ Of course, when the violation is unintentional or technical 
in nature, less formal actions can be helpful, especially if the 
misstatement is quickly corrected. My comments are limited to 
matters where the violation was egregious.
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    Going forward, in cases involving egregious and undisputed Made-in-
USA fraud, I believe there should be a strong presumption against 
simple cease-and-desist orders. Instead, the Commission should consider 
remedies tailored to the individual circumstances of the fraud, 
including redress and notice for consumers, disgorgement of ill-gotten 
gains, opt-in return programs, or admissions of wrongdoing.
    Some general principles can inform our approach to tailoring 
remedies. For firms that built their core brand identity on a lie, full 
redress or the opportunity for opt-in refunds may be appropriate, given 
the centrality of the false claim and its widespread dissemination.\15\ 
When refunds are difficult to administer or the firm lacks ability to 
pay, the Commission should at least seek notification to consumers or 
corrective advertising \16\--especially in markets where country of 
origin bears on health or safety. Finally, if firms' misrepresentations 
are undisputed and clear, the Commission should strongly consider 
seeking admissions--a form of accountability that is explicitly 
contemplated by our rules of practice.\17\
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    \15\ Particularly for misbranded products, the FTC could likely 
show that a firm's Made-in-USA misrepresentations were widely 
disseminated, that they were of the kind usually relied on by 
reasonable persons, and that consumers purchased the product, thus 
making gross sales an appropriate starting point for calculating 
restitution. See FTC v. Kuykendall, 371 F.3d 745, 764 (10th Cir. 
2004) (holding, in a contempt action, that after the Commission 
establishes a presumption of reliance, ``the district court may use 
the Defendants' gross receipts as a starting point''). Importantly, 
if there was deception in the sale, defendants generally do not 
receive credit for the value of the product sold. See FTC v. Figgie 
Int'l, Inc., 994 F.2d 595, 606-07 (9th Cir. 1993) (``The fraud in 
the selling, not the value of the thing sold, is what entitles 
consumers'' to full redress.).
    \16\ Corrective advertising can be important to preventing firms 
from continuing to profit from deception. As explained by then-
Chairman Pitofsky after a corrective advertising order was upheld by 
the D.C. Circuit, ``It is important for advertisers to know that it 
is not enough just to discontinue a deceptive ad, and that they can 
be held responsible for the lingering misimpressions created by 
deceptive advertising.'' See Press Release, Fed. Trade Comm'n, 
Appeals Court Upholds FTC Ruling; Doan's Must Include Corrective 
Message in Future Advertising and Labeling (Aug. 21, 2000), https://www.ftc.gov/news-events/press-releases/2000/08/appeals-court-upholds-ftc-ruling-doans-must-include-corrective.
    \17\ See 16 CFR 2.32.
---------------------------------------------------------------------------

    Admissions may have particular value in cases involving Made-in-USA 
fraud. In these cases, clear and undisputed facts may give the agency a 
strong basis to demand an admission from a firm. And if that firm lacks 
funds or records for consumer redress or disgorgement, admissions can 
be a powerful tool to give consumers, competitors, and counterparties 
tools to remedy harm, even when we cannot.\18\ Moreover, because the 
Commission is generally limited to seeking equitable rather than 
punitive remedies for first-time offenses, seeking admissions is among 
the most effective ways we can deter lawbreaking and change the cost-
benefit calculus of deception.
---------------------------------------------------------------------------

    \18\ For example, a factual admission may have a preclusive 
effect in a Lanham Act claim by a competitor.
---------------------------------------------------------------------------

    I hope that the Commission will reexamine its approach to tackling 
Made-in-USA fraud. I believe we should seek more tailored remedies that 
vindicate the important goals of the program and send the message that 
Made-in-USA fraud will not be tolerated.

Conclusion

    Nectar Sleep, Sandpiper, and Patriot Puck clearly violated the law, 
allowing them to enrich themselves and harm their customers and 
competitors. Especially given widespread interest in buying American 
products, we should do more to protect the authenticity of Made-in-USA 
claims. I am concerned that no-money, no-fault settlements send an 
ambiguous message about our commitment to protecting consumers and 
domestic manufacturers from Made-in-USA fraud.
    Going forward, I hope the Commission can better protect against 
harms to competition and consumers by seeking monetary relief, notice, 
admissions, and other tailored remedies. Every firm needs to understand 
that products labeled ``Made in USA'' should be made in the USA, and 
that

[[Page 47166]]

fake branding will come with real consequences.

[FR Doc. 2018-20272 Filed 9-17-18; 8:45 am]
BILLING CODE 6750-01-P



                                                                            Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Notices                                         47161

                                                                          EARLY TERMINATIONS GRANTED JULY 1, 2018 THROUGH JULY 31, 2018—Continued
                                               20181571   ......    G      Canyon Value Realization Fund, L.P.; MGM Resorts International; Canyon Value Realization Fund, L.P.
                                               20181572   ......    G      The CVRF Trust; MGM Resorts International; The CVRF Trust.
                                               20181573   ......    G      The CBEF Master Trust; MGM Resorts International; The CBEF Master Trust.
                                               20181616   ......    G      Fortive Corporation; Warburg Pincus Private Equity X, L.P.; Fortive Corporation.

                                                                                                                              07/26/2018

                                               20181370   ......    G      Cohu, Inc.; Xcerra Corp.; Cohu, Inc.
                                               20181583   ......    G      PayPal Holdings, Inc.; Primus Capital Fund VII, L.P.; PayPal Holdings, Inc.
                                               20181604   ......    G      Ribbon Communications Inc.; Edgewater Networks, Inc.; Ribbon Communications Inc.
                                               20181637   ......    G      Goldman Sachs Renewable Power LLC; South Jersey Industries, Inc.; Goldman Sachs Renewable Power LLC.
                                               20181638   ......    G      PGGM Cooperatie U.A.; Electricite de France S.A.; PGGM Cooperatie U.A.

                                                                                                                              07/27/2018

                                               20181632   ......    G      Accor S.A.; Sam Nazarian; Accor S.A.
                                               20181636   ......    G      The Williams Companies, Inc.; TPG Growth III DE AIV II, L.P.; The Williams Companies, Inc.
                                               20181654   ......    G      KKR Americas Fund XII, L.P.; AppLovin Corporation; KKR Americas Fund XII, L.P.
                                               20181656   ......    G      Partners Group Access 967 L.P.; FPCI Astorg V; Partners Group Access 967 L.P.
                                               20181658   ......    G      Andritz AG; Xerium Technologies, Inc.; Andritz AG.
                                               20181660   ......    G      AIS Investment, LLC; Affinion Group Holdings, Inc.; AIS Investment, LLC.
                                               20181663   ......    G      Intertape Polymer Group Inc.; Piper Ridge Trust; Intertape Polymer Group Inc.
                                               20181666   ......    G      Green Equity Investors Side VII, L.P.; Letterone Investment Holdings S.A.; Green Equity Investors Side VII, L.P.
                                               20181667   ......    G      Mann Familienbeteiligungsgesellschaft mbH_Co. KG; Tri-Dim Filter Corporation; Mann Familienbeteiligungsgesellschaft
                                                                              mbH_Co. KG.

                                                                                                                              07/30/2018

                                               20181595 ......      G      Green Plains Inc.; Marilyn and James Hebenstreit; Green Plains Inc.
                                               20181662 ......      G      Shanghai Fosun Pharmaceutical (Group) Co., Ltd.; Butterfly Network, Inc.; Shanghai Fosun Pharmaceutical (Group) Co.,
                                                                             Ltd.
                                               20181668   ......    G      Synnex Corporation; Convergys Corporation; Synnex Corporation.
                                               20181669   ......    G      RoundTable Healthcare Partners IV, L.P.; Bovie Medical Corporation; RoundTable Healthcare Partners IV, L.P.
                                               20181672   ......    G      Spectrum Equity VII, L.P.; Lucid Software Inc.; Spectrum Equity VII, L.P.
                                               20181673   ......    G      The Goldman Sachs Group, Inc.; MDC Partners Inc.; The Goldman Sachs Group, Inc.
                                               20181676   ......    G      Insight Venture Partners IX, L.P.; ezCater, Inc.; Insight Venture Partners IX, L.P.
                                               20181677   ......    G      Crestview Partners III, L.P.; Advanced Marketing & Processing, Inc.; Crestview Partners III, L.P.
                                               20181680   ......    G      AI Global Investments & Cy S.C.A.; General Electric Company; AI Global Investments & Cy S.C.A.
                                               20181681   ......    G      Omnicom Group; Credera Holdings; Omnicom Group.

                                                                                                                              07/31/2018

                                               20180590   ......    G      Grifols, S.A.; The Biotest Divestiture Trust; Grifols, S.A.
                                               20181457   ......    G      Myriad Genetics, Inc.; Counsyl, Inc.; Myriad Genetics, Inc.
                                               20181646   ......    G      Alphabet Inc.; Warburg Pincus Private Equity X, L.P.; Alphabet Inc.
                                               20181683   ......    G      NuVision Federal Credit Union; Denali Federal Credit Union; NuVision Federal Credit Union.



                                               FOR FURTHER INFORMATION CONTACT:                           SUMMARY:   The consent agreement in this              you prefer to file your comment on
                                               Theresa Kingsberry, Program Support                        matter settles alleged violations of                  paper, write ‘‘Patriot Puck; File No.
                                               Specialist, Federal Trade Commission                       federal law prohibiting unfair or                     1823113’’ on your comment and on the
                                               Premerger Notification Office, Bureau of                   deceptive acts or practices. The attached             envelope, and mail your comment to the
                                               Competition, Room CC–5301,                                 Analysis to Aid Public Comment                        following address: Federal Trade
                                               Washington, DC 20024, (202) 326–3100.                      describes both the allegations in the                 Commission, Office of the Secretary,
                                                 By direction of the Commission.                          complaint and the terms of the consent                600 Pennsylvania Avenue NW, Suite
                                                                                                          order—embodied in the consent                         CC–5610 (Annex D), Washington, DC
                                               Donald S. Clark,
                                                                                                          agreement—that would settle these                     20580; or deliver your comment to:
                                               Secretary.
                                                                                                          allegations.                                          Federal Trade Commission, Office of the
                                               [FR Doc. 2018–20275 Filed 9–17–18; 8:45 am]                                                                      Secretary, Constitution Center, 400 7th
                                               BILLING CODE 6750–01–P                                     DATES: Comments must be received on                   Street SW, 5th Floor, Suite 5610 (Annex
                                                                                                          or before October 12, 2018.                           D), Washington, DC 20024.
                                                                                                          ADDRESSES:    Interested parties may file a           FOR FURTHER INFORMATION CONTACT: Julia
                                               FEDERAL TRADE COMMISSION
                                                                                                          comment online or on paper, by                        Solomon Ensor (202–326–2377) or
                                                                                                          following the instructions in the                     Crystal Ostrum (202–326–3405), Bureau
daltland on DSKBBV9HB2PROD with NOTICES




                                               [File No. 182 3113]                                                                                              of Consumer Protection, 600
                                                                                                          Request for Comment part of the
                                                                                                          SUPPLEMENTARY INFORMATION section                     Pennsylvania Avenue NW, Washington,
                                               Patriot Puck; Analysis To Aid Public
                                                                                                          below. Write: ‘‘Patriot Puck’’ on your                DC 20580.
                                               Comment
                                                                                                          comment, and file your comment online                 SUPPLEMENTARY INFORMATION: Pursuant
                                               AGENCY:    Federal Trade Commission.                       at https://ftcpublic.commentworks.com/                to Section 6(f) of the Federal Trade
                                                                                                          ftc/patriotpuckconsent by following the               Commission Act, 15 U.S.C. 46(f), and
                                               ACTION:   Proposed consent agreement.
                                                                                                          instructions on the web-based form. If                FTC Rule 2.34, 16 CFR 2.34, notice is


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                                               47162                     Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Notices

                                               hereby given that the above-captioned                   else’s Social Security number; date of                containing a consent order from
                                               consent agreement containing a consent                  birth; driver’s license number or other               Underground Sports Inc., d/b/a Patriot
                                               order to cease and desist, having been                  state identification number, or foreign               Puck; Hockey Underground Inc., d/b/a
                                               filed with and accepted, subject to final               country equivalent; passport number;                  Patriot Puck; Ipuck Inc., d/b/a Patriot
                                               approval, by the Commission, has been                   financial account number; or credit or                Puck; IPuck Hockey Inc., d/b/a Patriot
                                               placed on the public record for a period                debit card number. You are also solely                Puck; and George Statler III
                                               of thirty (30) days. The following                      responsible for making sure that your                 (‘‘Respondents’’).
                                               Analysis to Aid Public Comment                          comment does not include any sensitive                   The proposed consent order has been
                                               describes the terms of the consent                      health information, such as medical                   placed on the public record for thirty
                                               agreement, and the allegations in the                   records or other individually                         (30) days for receipt of comments by
                                               complaint. An electronic copy of the                    identifiable health information. In                   interested persons. Comments received
                                               full text of the consent agreement                      addition, your comment should not                     during this period will become part of
                                               package can be obtained from the FTC                    include any ‘‘trade secret or any                     the public record. After thirty (30) days,
                                               Home Page (for September 12, 2018), on                  commercial or financial information                   the Commission will again review the
                                               the World Wide Web, at https://                         which . . . is privileged or                          agreement and the comments received,
                                               www.ftc.gov/news-events/commission-                     confidential’’—as provided by Section                 and will decide whether it should
                                               actions.                                                6(f) of the FTC Act, 15 U.S.C. 46(f), and             withdraw from the agreement or make
                                                  You can file a comment online or on                  FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)—               final the agreement’s proposed order.
                                               paper. For the Commission to consider                   including in particular competitively                    This matter involves Respondents’
                                               your comment, we must receive it on or                  sensitive information such as costs,                  marketing, sale, and distribution of
                                               before October 12, 2018. Write ‘‘Patriot                sales statistics, inventories, formulas,              hockey pucks with claims that the
                                               Puck; File No. 1823113’’ on your                        patterns, devices, manufacturing                      pucks are made in the United States.
                                               comment. Your comment—including                         processes, or customer names.                            According to the FTC’s complaint,
                                               your name and your state—will be                           Comments containing material for                   Respondents represented that all of their
                                               placed on the public record of this                     which confidential treatment is                       hockey pucks are all or virtually all
                                               proceeding, including, to the extent                    requested must be filed in paper form,                made in the United States. In fact,
                                               practicable, on the public Commission                   must be clearly labeled ‘‘Confidential,’’             Respondents’ hockey pucks are wholly
                                               website, at https://www.ftc.gov/policy/                 and must comply with FTC Rule 4.9(c).                 imported from China. Specifically, since
                                               public-comments.                                        In particular, the written request for                January of 2016, Respondents have
                                                  Postal mail addressed to the                         confidential treatment that accompanies               imported 74,411 kilograms of hockey
                                               Commission is subject to delay due to                   the comment must include the factual                  pucks, which is the equivalent of more
                                               heightened security screening. As a                     and legal basis for the request, and must             than 400,000 standard-weight pucks.
                                               result, we encourage you to submit your                 identify the specific portions of the                 Based on the foregoing, the complaint
                                               comments online. To make sure that the                  comment to be withheld from the public                alleges that Respondents engaged in
                                               Commission considers your online                        record. See FTC Rule 4.9(c). Your                     deceptive acts or practices in violation
                                               comment, you must file it at https://                   comment will be kept confidential only                of Section 5(a) of the FTC Act.
                                               ftcpublic.commentworks.com/ftc/                         if the General Counsel grants your                       The proposed consent order contains
                                               patriotpuckconsent by following the                     request in accordance with the law and                provisions designed to prevent
                                               instructions on the web-based form. If                  the public interest. Once your comment                Respondents from engaging in similar
                                               this Notice appears at http://                          has been posted on the public FTC                     acts and practices in the future.
                                               www.regulations.gov/#!home, you also                    website—as legally required by FTC                    Consistent with the FTC’s Enforcement
                                               may file a comment through that                         Rule 4.9(b)—we cannot redact or                       Policy Statement on U.S. Origin Claims,
                                               website.                                                remove your comment from the FTC                      Part I prohibits Respondents from
                                                  If you prefer to file your comment on                website, unless you submit a                          making U.S.-origin claims for their
                                               paper, write ‘‘Patriot Puck; File No.                   confidentiality request that meets the                products unless either: (1) The final
                                               1823113’’ on your comment and on the                    requirements for such treatment under                 assembly or processing of the product
                                               envelope, and mail your comment to the                  FTC Rule 4.9(c), and the General                      occurs in the United States, all
                                               following address: Federal Trade                        Counsel grants that request.                          significant processing that goes into the
                                               Commission, Office of the Secretary,                       Visit the FTC website at http://                   product occurs in the United States, and
                                               600 Pennsylvania Avenue NW, Suite                       www.ftc.gov to read this Notice and the               all or virtually all ingredients or
                                               CC–5610 (Annex D), Washington, DC                       news release describing it. The FTC Act               components of the product are made
                                               20580; or deliver your comment to the                   and other laws that the Commission                    and sourced in the United States; (2) a
                                               following address: Federal Trade                        administers permit the collection of                  clear and conspicuous qualification
                                               Commission, Office of the Secretary,                    public comments to consider and use in                appears immediately adjacent to the
                                               Constitution Center, 400 7th Street SW,                 this proceeding, as appropriate. The                  representation that accurately conveys
                                               5th Floor, Suite 5610 (Annex D),                        Commission will consider all timely                   the extent to which the product contains
                                               Washington, DC 20024. If possible,                      and responsive public comments that it                foreign parts, ingredients or
                                               submit your paper comment to the                        receives on or before October 12, 2018.               components, and/or processing; or (3)
                                               Commission by courier or overnight                      For information on the Commission’s                   for a claim that a product is assembled
                                               service.                                                privacy policy, including routine uses                in the United States, the product is last
                                                  Because your comment will be placed                  permitted by the Privacy Act, see                     substantially transformed in the United
                                               on the publicly accessible FTC website                  https://www.ftc.gov/site-information/                 States, the product’s principal assembly
daltland on DSKBBV9HB2PROD with NOTICES




                                               at https://www.ftc.gov, you are solely                  privacy-policy.                                       takes place in the United States, and
                                               responsible for making sure that your                                                                         United States assembly operations are
                                               comment does not include any sensitive                  Analysis of Proposed Consent Order To                 substantial.
                                               or confidential information. In                         Aid Public Comment                                       Part II prohibits Respondents from
                                               particular, your comment should not                        The Federal Trade Commission                       making any country-of-origin claim
                                               include any sensitive personal                          (‘‘FTC’’ or ‘‘Commission’’) has accepted,             about a product or service unless the
                                               information, such as your or anyone                     subject to final approval, an agreement               claim is true, not misleading, and


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                                                                          Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Notices                                                      47163

                                               Respondents have a reasonable basis                     companies and an individual who we                      against the more than twenty prior
                                               substantiating the representation.                      allege falsely claimed their products                   respondents in cases involving U.S.-
                                                  Parts III through VI are reporting and               were made in the U.S.A. in violation of                 origin claims.
                                               compliance provisions. Part III requires                Section 5 of the FTC Act. In Patriot                       In this area, administrative consent
                                               Respondents to acknowledge receipt of                   Puck, respondent George Statler III and                 orders securing permanent injunctive
                                               the order, to provide a copy of the order               his companies marketed hockey pucks                     relief buttressed by the threat of
                                               to certain current and future principals,               imported from China as ‘‘Made in                        significant civil penalties have been
                                               officers, directors, and employees, and                 America’’ and ‘‘The only American                       largely successful in keeping former
                                               to obtain an acknowledgement from                       Made Hockey Puck!’’ The Nectar Sleep                    violators on the straight and narrow and
                                               each such person that they have                         respondents included the statement                      have no doubt served as a warning to
                                               received a copy of the order. Part IV                   ‘‘Designed and Assembled in the USA’’                   others that false claims will be
                                               requires each Respondent to file a                      in product descriptions for mattresses                  identified and pursued. Therefore, we
                                               compliance report within one year after                 wholly imported from China. And in                      are voting in support of the relief set
                                               the order becomes final and to notify the               Sandpiper/PiperGear, respondents                        forth in the final and proposed
                                               Commission within 14 days of certain                    marketed imported backpacks and                         administrative orders announced today.
                                               changes that would affect compliance                    wallets on websites claiming ‘‘Featuring                   We write separately to highlight the
                                               with the order. Part V requires                         American Made Products’’ and shipped                    possibility that the FTC can further
                                               Respondents to maintain certain                         imported wallets with cards labeled                     maximize its enforcement reach, in all
                                               records, including records necessary to                 ‘‘American Made.’’ The Commission’s                     areas, through strategic use of additional
                                               demonstrate compliance with the order.                  complaints allege that these claims were                remedies. For example, in the U.S.-
                                               Part VI requires Respondents to submit                  plainly false and the respondents have                  origin claim context, there may be cases
                                               additional compliance reports when                      all agreed to strong administrative                     in which consumers paid a clear
                                               requested by the Commission and to                      consent orders.                                         premium for a product marketed as
                                               permit the Commission or its                               Each of the administrative consent                   ‘‘Made in the U.S.A.’’ or made their
                                               representatives to interview                            orders prohibits the respondents from                   purchasing decision in part based on
                                               respondent’s personnel.                                 making these types of claims in the                     perceived quality, safety, health or
                                                  Finally, Part VII is a ‘‘sunset’’                    future 2 and requires the respondents to                environmental benefits tied to a U.S.-
                                               provision, terminating the order after                  engage in recordkeeping and reporting                   origin claim.6 In such instances,
                                               twenty (20) years, with certain                         that will assist the FTC in monitoring                  additional remedies such as monetary
                                               exceptions.                                             compliance.3 Any violation of these                     relief or notice to consumers may be
                                                  The purpose of this analysis is to aid               orders can result in a civil penalty of                 warranted. Requiring law violators to
                                               public comment on the proposed order.                   over $40,000 per violation.4 There is                   provide notice to consumers identifying
                                               It is not intended to constitute an                     evidence that these potential penalties                 the deceptive claim can help mitigate
                                               official interpretation of the proposed                 have served as powerful deterrents: to                  individual consumer injury—an
                                               order or to modify its terms in any way.                date the FTC has only had cause to                      informed consumer would have the
                                                                                                       initiate one contempt proceeding 5                      option to seek a refund, or, at the very
                                                 By direction of the Commission,
                                               Commissioner Chopra dissenting.
                                                                                                                                                               least, stop using the product.
                                                                                                       them. Commission staff has also issued                     The Commission has already begun a
                                               Donald S. Clark,                                        comprehensive guidance, press releases and blogs        broad review of whether we are using
                                               Secretary.                                              in this area to promote compliance.                     every available remedy as effectively as
                                                                                                          2 Specifically, the orders prohibit respondents
                                               Concurring Statement of Commissioner                    from making deceptive unqualified U.S.-origin
                                                                                                                                                               possible to fairly and efficiently pursue
                                               Rebecca Kelly Slaughter, in Which                       claims about their products and lay out the type of     vigorous enforcement of our consumer
                                               Chairman Joe Simons Joins                               substantiation required to make truthful claims. The    protection and competition laws. If we
                                                                                                       orders also govern the manner and type of               find that there are new or infrequently
                                                 When companies falsely claim that                     qualification needed to make a lawful qualified
                                                                                                       claim regarding U.S.-origin. The orders further         applied remedies that we should be
                                               their products are made in the U.S.A.,
                                                                                                       prohibit respondents from making any country-of-        seeking more often, the Commission
                                               they take advantage of consumers who                    origin claim about a product or service unless the      will act accordingly—and, where
                                               choose to spend their dollars supporting                claim is true, not misleading, and respondents have     appropriate, signal to the public how we
                                               domestic products and the companies                     a reasonable basis substantiating the representation.
                                                                                                                                                               intend to approach enforcement. In our
                                               who expend resources in order to make                      3 Each of the orders requires the respondents to

                                                                                                       file a compliance report within one year after the      view, a thoughtful review and forward-
                                               the claim proudly and truthfully. Today,
                                                                                                       order becomes final and to notify the Commission        looking plan is a more effective and
                                               the Commission is announcing three                      within 14 days of certain changes that would affect     efficient use of Commission resources
                                               enforcement actions 1 targeting                         compliance with the order. Respondents are also
                                                                                                       required to maintain certain records, including
                                                                                                                                                               than re-opening and re-litigating the
                                                  1 To date, the Commission has initiated 25           records necessary to demonstrate compliance with        cases before us today.7
                                               enforcement actions arising from misleading U.S.-       the order. The orders also require respondents to
                                               origin claims, targeting entities that engage in        submit additional compliance reports when                 6 Of the three cases the FTC is announcing today,

                                               intentional deception or refuse to come into prompt     requested by the Commission and to permit the           we note that consideration of additional remedies
                                               compliance. FTC staff also works extensively with       Commission or its representatives to interview          such as notice could have been of particular value
                                               companies to achieve compliance in this area,           respondents’ personnel. The orders remain in effect     in the Nectar Sleep matter, which involved U.S.-
                                               issuing more than 130 closing letters addressing        for 20 years.                                           origin claims about mattresses. The fact that
                                                                                                          4 Outside of specific rules, the FTC does not have   purchasers of Nectar Sleep mattresses can seek a
                                               potential U.S.-origin claims. These letters highlight
                                               that where companies make errors or potentially         authority to seek civil penalties for violations of     refund for any reason for 365 days after their
                                               deceptive claims to consumers, Commission staff         Section 5 of the FTC Act. The FTC does have             original purchase, https://www.nectarsleep.com/p/
daltland on DSKBBV9HB2PROD with NOTICES




                                               works with them to quickly come into compliance.        authority to seek civil penalties for any violations    returns/, and that purchasers received mattresses
                                               In addition to enforcement actions and compliance       of its administrative orders. See 15 U.S.C. 45(l) and   with accurate country-of-origin labels, contributed
                                               counseling, the Commission’s program to protect         16 CFR 1.98(d) (2018).                                  to our decision to vote in favor of the final Nectar
                                               consumers from deceptive U.S.-origin claims                5 See https://www.ftc.gov/news-events/press-         Sleep order.
                                               involves significant business education efforts. In     releases/2006/06/ftc-alleges-stanley-made-false-          7 It is worth noting that all of the cases announced

                                               1997, the Commission issued an Enforcement              made-usa-claims-about-its-tools (announcing             today began well before the current complement of
                                               Policy Statement on U.S. Origin Claims that             settlement with Stanley Works that imposed a            Commissioners were instated, and therefore before
                                               explains the types of U.S.-origin claims that can be    $205,000 civil penalty for violating prior order        staff could reasonably have been expected to
                                               made and the substantiation needed to support           regarding U.S.-origin claims).                                                                      Continued




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                                               47164                     Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Notices

                                               Statement of Commissioner Rohit                         of values, such as fair labor practices, to              Whatever its purpose, cheating
                                               Chopra                                                  consumers.                                             distorts markets in fundamental ways. It
                                                                                                          Made-in-USA branding can also be                    rips off Americans who prefer buying
                                               Question Presented
                                                                                                       used to fraudulently conceal countries                 domestic goods. It also punishes firms
                                                 Are no-money, no-fault settlements                    of origin that may cause concerns for                  that may bear higher costs to produce
                                               adequate to remedy serious violations of                consumers. For example, in recent                      goods here, yet must compete on price
                                               the FTC’s ‘‘Made in USA’’ standard?                     years, regulators have investigated                    or branding with firms that cheat.
                                               Summary                                                 serious health and safety problems with                Finally, widespread deception sows
                                                                                                       pet food 1 and drywall 2 imported from                 doubt 6 about the veracity of Made-in-
                                                 • Sellers gain a competitive                          China, and the OECD estimates that                     USA claims, which may reduce the
                                               advantage when they falsely market a                    China is the source of the vast majority               claim’s value and discourage domestic
                                               product as Made in USA, especially                      of counterfeit goods imported to the                   manufacturing.
                                               when this claim is closely tied to the                  U.S.3 Against this backdrop, slapping a
                                               development of the product’s brand.                                                                            Backpacks, Hockey Pucks, and
                                                                                                       ‘‘Made-in-USA’’ label on a good made
                                                 • Third-party analysis suggests that                                                                         Mattresses
                                                                                                       abroad can be its own form of
                                               Americans are often willing to pay                                                                                Today, the Commission is voting on
                                                                                                       counterfeiting, replacing an unpopular
                                               significantly more for American-made                                                                           three cases involving Made-in-USA
                                                                                                       attribute with one connoting quality,
                                               goods compared to those made in China.                                                                         fraud.7 The conduct of each of these
                                                                                                       safety, and authenticity.
                                               Several of the matters under                                                                                   companies was brazen and deceitful. In
                                                                                                          In many cases, Americans are actually
                                               consideration by the Commission                                                                                my view, each respondent firm harmed
                                                                                                       willing to pay a premium for goods that
                                               involve Made-in-USA fraud relating to                                                                          both consumers and honest competitors.
                                                                                                       are made in our country, especially
                                               products made in China.                                                                                           In the Sandpiper and Patriot Puck
                                                 • The Commission should modify its                    compared to those made in China. A
                                                                                                                                                              matters, the evidence suggests that the
                                               approach to resolving serious Made-in-                  2012 survey by the Boston Consulting
                                                                                                                                                              Made-in-USA claim was a critical
                                               USA fraud by seeking more tailored                      Group shows that more than 80% of
                                                                                                                                                              component of the companies’ brand
                                               remedies that could include restitution,                Americans express a willingness to pay                 identities. In the Nectar Sleep matter,
                                               disgorgement, notice, and admissions of                 more for made-in-USA products,4 which                  the false Made-in-USA claim may have
                                               wrongdoing, based on the facts and                      is consistent with other surveys.5                     been asserted to convey health or safety
                                               circumstances of each matter.                              Importantly, however, price premium                 benefits.
                                                                                                       does not always accurately capture the                    Sandpiper/PiperGear USA:
                                               Analysis and Discussion                                 harm caused by Made-in-USA fraud.                      Sandpiper/PiperGear USA
                                               The Power of Branding and Made in                       Especially in markets for commodity                    (‘‘Sandpiper’’) built its brand of
                                               USA                                                     goods where consumers may be                           military-themed backpacks and gear on
                                                                                                       particularly price-sensitive, firms may                patriotism. As detailed in the FTC’s
                                                  While brand identity has historically                make false claims to distinguish their
                                               been a major focus in markets for luxury                                                                       complaint, the company boasted in its
                                                                                                       brand or conceal unpopular countries of                promotional materials about its ‘‘US
                                               goods, today it plays a key role in all                 origin.                                                manufacturing,’’ inserted ‘‘American
                                               segments of our economy. As advanced
                                                                                                                                                              Made’’ labels into products, and
                                               manufacturing and global supply chains                     1 Food & Drug Admin., Melanine Pet Food Recall
                                                                                                                                                              included the hashtag ‘‘#madeinusa’’
                                               challenge firms to find new ways to                     of 2007 (May 2007), https://www.fda.gov/animal         alongside social media posts.8 The
                                               lower operating costs, consumer goods                   veterinary/safetyhealth/recallswithdrawals/
                                                                                                       ucm129575.htm.                                         company sold thousands of backpacks
                                               industries (including everything from
                                                                                                          2 Fed. Trade Comm’n, Tests for Defective Drywall    on American military bases overseas.
                                               apparel to packaged goods) have                                                                                   In reality, Sandpiper imported the
                                                                                                       (Dec. 2009), https://www.consumer.ftc.gov/articles/
                                               focused intensely on building and                       0124-tests-defective-drywall.                          vast majority 9 of its products from
                                               cultivating their brands as a way to                       3 Global trade in fake goods worth nearly half a
                                                                                                                                                              China or Mexico, a fact the firm actively
                                               drive up margins through price and                      trillion dollars a year, Org. for Econ. Co-Operation
                                                                                                                                                              sought to hide through its aggressive
                                               volume enhancements.                                    and Dev. (Apr. 18, 2016), http://www.oecd.org/
                                                                                                       industry/global-trade-in-fake-goods-worth-nearly-      Made-in-USA branding.
                                                  Branding is distinct from marketing                                                                            Patriot Puck: Hockey pucks typically
                                                                                                       half-a-trillion-dollars-a-year.htm.
                                               and advertising. A successful brand is                     4 Made in America, Again: Understanding the         are manufactured to meet certain
                                               one that creates a clear identity that goes             value of ’Made in the USA’, The Boston Consulting      weight, thickness, and diameter
                                               beyond specific product attributes. A                   Group (Nov. 2012) [Hereinafter Made in America,
                                                                                                                                                              specifications. These are commodity
                                               brand identity connects with a                          Again].
                                                                                                          5 See, e.g., Made in America: Most Americans love   goods. Purchasers largely see competing
                                               consumer’s values, aspirations, and                                                                            pucks that boast similar specifications,
                                                                                                       the idea of buying a U.S.-made product instead of
                                               sense of self.                                          an import. But sometimes it’s hard to tell what’s      so brand positioning can be especially
                                                  A Made-in-USA claim can serve as a                   real and what’s not, Consumer Reports (May 21,         salient.
                                               key element of a product’s brand that                   2015), https://www.consumerreports.org/cro/
                                               communicates quality, durability,                       magazine/2015/05/made-in-america/index.htm
                                                                                                                                                                6 See Made in America, supra note 5 (reporting on
                                                                                                       [hereinafter Made in America] (reporting on a
                                               authenticity, and safety, among other                   national survey finding that 60%+ of Americans         a national survey finding that 23% of Americans
                                               attributes. Not only can it be a signal                 would pay a 10% premium for Made-in-USA                lack trust in ‘‘Made in America’’ labels).
                                                                                                                                                                7 Claiming falsely that a product is Made in USA
                                               about specific product attributes but it                goods); Price of patriotism: How much extra are you
                                                                                                       willing to pay for a product that’s made in            violates Section 5 of the FTC Act. Although the FTC
                                               can also contribute to the development                                                                         brought a Made-in-USA case as early as 1940,
                                                                                                       America?, Reuters (July 18, 2017), http://
                                               of a brand identity that connotes a set                 fingfx.thomsonreuters.com/gfx/rngs/USA-                Congress amended the FTC Act in 1994 to state
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                                                                                                       BUYAMERICAN-POLL/01005017035/index.html                explicitly that Made-in-USA labeling must be
                                               anticipate our particular priorities and views on       (reporting on a national survey finding that 60%+      consistent with FTC decisions and orders. See 15
                                               enforcement. To renegotiate these settlements at        of Americans would pay a premium of 5% or more).       U.S.C. 45a.
                                                                                                                                                                8 Compl. at ¶¶ 6–7.
                                               this point, after litigation strategy was developed     Of course, surveys reveal only Americans’ stated
                                               and executed, would require substantial investment      willingness to pay a premium, not their actual           9 According to the Complaint, more than 95% of

                                               of staff time and effort and diversion of resources     buying behavior. But assuming Americans will pay       Sandpiper’s products are imported as finished
                                               from other important cases. A forward-looking set       no premium runs contrary to the available              goods, while approximately 80% of PiperGear’s
                                               of remedy priorities will help staff develop            evidence, and firms’ aggressive Made-in-USA            products are either imported as finished goods or
                                               litigation strategy in an efficient way.                branding shows they clearly see it as advantageous.    contain significant imported components. Id. at ¶ 7.



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                                                                         Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Notices                                                     47165

                                                  Patriot Puck positioned its brand as                    Nectar’s conduct had clear                            where country of origin bears on health
                                               the all-American alternative to imported                consequences. Competitors who                            or safety. Finally, if firms’
                                               pucks. The company literally wrapped                    actually made mattresses domestically                    misrepresentations are undisputed and
                                               its pucks in the flag, embossing each                   were undercut, and consumers looking                     clear, the Commission should strongly
                                               one with an image of an American flag.                  for U.S.-made mattresses—possibly for                    consider seeking admissions—a form of
                                               To drive home the point, the firm                       health or safety reasons—got ripped off.                 accountability that is explicitly
                                               claimed its pucks were ‘‘Proudly Made                   Further, Nectar may continue to profit                   contemplated by our rules of practice.17
                                               in the USA,’’ ‘‘MADE IN AMERICA,’’                      from the lingering misperception that its
                                                                                                       mattresses are made in the U.S.                             Admissions may have particular value
                                               ‘‘100% Made in the USA!,’’ and ‘‘100%
                                                                                                                                                                in cases involving Made-in-USA fraud.
                                               American Made!’’ The firm even                          Addressing Made-in-USA Fraud Going
                                               claimed it made ‘‘The Only American                                                                              In these cases, clear and undisputed
                                                                                                       Forward                                                  facts may give the agency a strong basis
                                               Made Hockey Puck!’’ 10
                                                                                                          Most FTC resolutions of Made-in-USA                   to demand an admission from a firm.
                                                  In reality, Patriot Puck imported all of
                                                                                                       violations have resulted in voluntary                    And if that firm lacks funds or records
                                               its pucks from China.11
                                                                                                       compliance measures 14 or cease-and-                     for consumer redress or disgorgement,
                                                  That Patriot Puck priced its pucks
                                                                                                       desist orders. Indeed, none of the three                 admissions can be a powerful tool to
                                               similarly to other firms illustrates why
                                                                                                       settlements approved today includes                      give consumers, competitors, and
                                               sticker price premium alone is a poor
                                                                                                       monetary relief, notice to consumers, or                 counterparties tools to remedy harm,
                                               proxy for the harm caused by Made-in-
                                                                                                       any admission of wrongdoing.                             even when we cannot.18 Moreover,
                                               USA fraud, especially in markets for                       Going forward, in cases involving
                                               commodity goods. Hockey is closely                                                                               because the Commission is generally
                                                                                                       egregious and undisputed Made-in-USA                     limited to seeking equitable rather than
                                               associated with international                           fraud, I believe there should be a strong
                                               competition, and Patriot Puck’s claim to                                                                         punitive remedies for first-time offenses,
                                                                                                       presumption against simple cease-and-                    seeking admissions is among the most
                                               offer the ‘‘only’’ puck made in America                 desist orders. Instead, the Commission
                                               was a clear effort to create a brand                                                                             effective ways we can deter lawbreaking
                                                                                                       should consider remedies tailored to the
                                               identity that would distinguish its                                                                              and change the cost-benefit calculus of
                                                                                                       individual circumstances of the fraud,
                                               pucks from the competition. Moreover,                                                                            deception.
                                                                                                       including redress and notice for
                                               by pricing its pucks similarly to its                   consumers, disgorgement of ill-gotten                       I hope that the Commission will
                                               competitors, Patriot Puck led consumers                 gains, opt-in return programs, or                        reexamine its approach to tackling
                                               to believe they were getting a great deal               admissions of wrongdoing.                                Made-in-USA fraud. I believe we should
                                               on American-made hockey pucks, when                        Some general principles can inform                    seek more tailored remedies that
                                               in fact they were overpaying for pucks                  our approach to tailoring remedies. For                  vindicate the important goals of the
                                               made in China.12                                        firms that built their core brand identity               program and send the message that
                                                  Nectar Sleep: Nectar Sleep is a direct-              on a lie, full redress or the opportunity                Made-in-USA fraud will not be
                                               to-consumer online mattress firm                        for opt-in refunds may be appropriate,                   tolerated.
                                               founded by Silicon Valley                               given the centrality of the false claim
                                               entrepreneurs. According to a CNBC                      and its widespread dissemination.15                      Conclusion
                                               profile of the company, Nectar competes                 When refunds are difficult to administer
                                                                                                                                                                  Nectar Sleep, Sandpiper, and Patriot
                                               with more than 200 firms to capture a                   or the firm lacks ability to pay, the
                                               slice of the $15 billion mattress market.               Commission should at least seek                          Puck clearly violated the law, allowing
                                                                                                       notification to consumers or corrective                  them to enrich themselves and harm
                                                  Nectar mattresses are made in China,
                                                                                                       advertising 16—especially in markets                     their customers and competitors.
                                               which may be a negative attribute for
                                               consumers who have health or safety                                                                              Especially given widespread interest in
                                               concerns about Chinese-made                                14 Of course, when the violation is unintentional     buying American products, we should
                                               mattresses.13 Perhaps for this reason, the              or technical in nature, less formal actions can be       do more to protect the authenticity of
                                                                                                       helpful, especially if the misstatement is quickly       Made-in-USA claims. I am concerned
                                               company falsely represented to                          corrected. My comments are limited to matters
                                               consumers that its mattresses were                      where the violation was egregious.                       that no-money, no-fault settlements
                                               assembled in the U.S.                                      15 Particularly for misbranded products, the FTC      send an ambiguous message about our
                                                                                                       could likely show that a firm’s Made-in-USA              commitment to protecting consumers
                                                                                                       misrepresentations were widely disseminated, that        and domestic manufacturers from Made-
                                                 10 Compl.   at ¶ 9.                                   they were of the kind usually relied on by
                                                 11 The  Commission has wisely named George            reasonable persons, and that consumers purchased         in-USA fraud.
                                               Statler III, who operated the company, in its           the product, thus making gross sales an appropriate        Going forward, I hope the
                                               Complaint.                                              starting point for calculating restitution. See FTC v.
                                                 12 Surveys show that Americans will pay a             Kuykendall, 371 F.3d 745, 764 (10th Cir. 2004)
                                                                                                                                                                Commission can better protect against
                                               premium for U.S.-made sporting goods relative to        (holding, in a contempt action, that after the           harms to competition and consumers by
                                               those made in China, meaning they effectively           Commission establishes a presumption of reliance,        seeking monetary relief, notice,
                                               discount goods made in China. Made in America,          ‘‘the district court may use the Defendants’ gross       admissions, and other tailored remedies.
                                               Again at 1. And Americans may be particularly           receipts as a starting point’’). Importantly, if there
                                               averse to buying patriotic-themed goods made in         was deception in the sale, defendants generally do       Every firm needs to understand that
                                               China. See, e.g., Matt Brooks, US Olympic uniforms      not receive credit for the value of the product sold.    products labeled ‘‘Made in USA’’
                                               spark fury in Congress, Wash. Post (July 13, 2012),     See FTC v. Figgie Int’l, Inc., 994 F.2d 595, 606–07      should be made in the USA, and that
                                               https://www.washingtonpost.com/blogs/2012-              (9th Cir. 1993) (‘‘The fraud in the selling, not the
                                               heavy-medal-london/post/us-olympic-uniforms-            value of the thing sold, is what entitles consumers’’
                                               spark-fury-in-congress/2012/07/13/gJQABvJmhW_           to full redress.).                                       Trade Comm’n, Appeals Court Upholds FTC
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                                               blog.html?utm_term=.3d96e391f1dd.                          16 Corrective advertising can be important to         Ruling; Doan’s Must Include Corrective Message in
                                                 13 Such concerns may be tied to recent recalls of     preventing firms from continuing to profit from          Future Advertising and Labeling (Aug. 21, 2000),
                                               Chinese-made mattresses and bedding, and may be         deception. As explained by then-Chairman Pitofsky        https://www.ftc.gov/news-events/press-releases/
                                               partially reflected in the premium Americans are        after a corrective advertising order was upheld by       2000/08/appeals-court-upholds-ftc-ruling-doans-
                                               willing to pay for U.S.-made furniture over             the D.C. Circuit, ‘‘It is important for advertisers to   must-include-corrective.
                                                                                                                                                                  17 See 16 CFR 2.32.
                                               furniture made in China. See Made in America,           know that it is not enough just to discontinue a
                                               Again at 6. In fact, numerous consumer reviews          deceptive ad, and that they can be held responsible        18 For example, a factual admission may have a

                                               specifically focus on comparing U.S.-made               for the lingering misimpressions created by              preclusive effect in a Lanham Act claim by a
                                               mattresses.                                             deceptive advertising.’’ See Press Release, Fed.         competitor.



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                                               47166                      Federal Register / Vol. 83, No. 181 / Tuesday, September 18, 2018 / Notices

                                               fake branding will come with real                        Hart-Scott-Rodino Antitrust                           indicated—of the waiting period
                                               consequences.                                            Improvements Act of 1976, requires                    provided by law and the premerger
                                               [FR Doc. 2018–20272 Filed 9–17–18; 8:45 am]              persons contemplating certain mergers                 notification rules. The listing for each
                                               BILLING CODE 6750–01–P                                   or acquisitions to give the Federal Trade             transaction includes the transaction
                                                                                                        Commission and the Assistant Attorney                 number and the parties to the
                                                                                                        General advance notice and to wait                    transaction. The grants were made by
                                               FEDERAL TRADE COMMISSION                                 designated periods before                             the Federal Trade Commission and the
                                                                                                        consummation of such plans. Section                   Assistant Attorney General for the
                                               Granting of Requests for Early                           7A(b)(2) of the Act permits the agencies,             Antitrust Division of the Department of
                                               Termination of the Waiting Period                        in individual cases, to terminate this
                                                                                                                                                              Justice. Neither agency intends to take
                                               Under the Premerger Notification                         waiting period prior to its expiration
                                                                                                                                                              any action with respect to these
                                               Rules                                                    and requires that notice of this action be
                                                                                                        published in the Federal Register.                    proposed acquisitions during the
                                                 Section 7A of the Clayton Act, 15                        The following transactions were                     applicable waiting period.
                                               U.S.C. 18a, as added by Title II of the                  granted early termination—on the dates

                                                                               EARLY TERMINATIONS GRANTED AUGUST 1, 2018 THRU AUGUST 31, 2018

                                                                                                                            08/02/2018

                                               20181399 ........     G    Tyson Family 2009 Trust; Thomas N. Bagwell; Tyson Family 2009 Trust.

                                                                                                                            08/03/2018

                                               20181417   ........   G    UnitedHealth Group Incorporated; PH Holdings, L.L.C.; UnitedHealth Group Incorporated.
                                               20181626   ........   G    Churchill Downs Incorporated; Eldorado Resorts, Inc.; Churchill Downs Incorporated.
                                               20181653   ........   G    Oakland County Credit Union; Vibe Credit Union; Oakland County Credit Union.
                                               20181689   ........   G    Atos SE; Syntel, Inc.; Atos SE.
                                               20181697   ........   G    The Timken Company; Clyde Blowers Capital Fund III LP; The Timken Company.
                                               20181698   ........   G    The Interpublic Group of Companies, Inc.; Acxiom Corporation; The Interpublic Group of Companies, Inc.
                                               20181700   ........   G    PSP Public Credit I Inc.; Permira V L.P. 2; PSP Public Credit I Inc.
                                               20181702   ........   G    Salesforce.com, Inc.; Datorama Inc.; Salesforce.com, Inc.
                                               20181703   ........   G    Ashtead Group plc; Matthew Lange and Karen Lange; Ashtead Group plc.
                                               20181707   ........   G    KKR Americas Fund XII, L.P.; Shamrock RB Co-Invest, LLC; KKR Americas Fund XII, L.P.
                                               20181709   ........   G    Francisco Partners V, L.P.; Permira V L.P.2; Francisco Partners V, L.P.
                                               20181716   ........   G    Kao Corporation; Gryphon Partners 3.5, L.P.; Kao Corporation.
                                               20181718   ........   G    Cambrex Corporation; SKCP III Angel AIV L.P.; Cambrex Corporation.
                                               20181721   ........   G    Asahi Kasei Corporation; Clearlake Capital Partners III, L.P.; Asahi Kasei Corporation.

                                                                                                                            08/06/2018

                                               20181671 ........     G    CACI International Inc.; General Dynamics Corporation; CACI International Inc.
                                               20181711 ........     G    The Veritas Capital Fund V, L.P.; Sharon B. Martin and Sydney F. Martin; The Veritas Capital Fund V, L.P.

                                                                                                                            08/07/2018

                                               20181726 ........     G    Michael S. Dell; Independence Contract Drilling, Inc.; Michael S. Dell.
                                               20181727 ........     G    Independence Contract Drilling, Inc.; Michael S. Dell; Independence Contract Drilling, Inc.

                                                                                                                            08/08/2018

                                               20181701 ........     G    Future plc; ABS Capital Partners VI, L.P.; Future plc.

                                                                                                                            08/10/2018

                                               20181644   ........   G    Alphabet Inc.; Neutron Holdings, Inc.; Alphabet Inc.
                                               20181661   ........   G    Perceptive Life Sciences Master Fund, Ltd.; Paul B. Manning; Perceptive Life Sciences Master Fund, Ltd.
                                               20181722   ........   G    CVC Capital Partners VII (A) L.P.; FIMEI S.p.A.; CVC Capital Partners VII (A) L.P.
                                               20181734   ........   G    EQT VIII (No. 1) SCSp; Apax VIII–B L.P.; EQT VIII (No. 1) SCSp.
                                               20181743   ........   G    GSO CSF III Holdco LP; Differential Brands Group Inc.; GSO CSF III Holdco LP.
                                               20181744   ........   G    GSO Capital Opportunities Fund III LP; Differential Brands Group Inc.; GSO Capital Opportunities Fund III LP.
                                               20181745   ........   G    Differential Brands Group Inc.; Global Brands Group Holding Limited; Differential Brands Group Inc.
                                               20181746   ........   G    Welsh, Carson, Anderson & Stowe XII, L.P.; NEW Asurion Corporation; Welsh, Carson, Anderson & Stowe XII, L.P.
                                               20181759   ........   G    PGGM Cooperatie U.A.; SUEZ S.A.; PGGM Cooperatie U.A.
                                               20181760   ........   G    The Procter & Gamble Company; Lilli Gordon; The Procter & Gamble Company.
                                               20181762   ........   G    New Jersey Resources Corporation; Riverstone Global Energy and Power Fund V (FT), L.P.; New Jersey Resources
                                                                            Corporation.
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                                               20181764   ........   G    Accel Growth Fund II L.P.; Freshworks Inc.; Accel Growth Fund II L.P.
                                               20181768   ........   G    Pfizer Inc.; AT Impf GmbH; Pfizer Inc.
                                               20181785   ........   G    Providence Equity Partners VIII L.P.; NEW Asurion Corporation; Providence Equity Partners VIII L.P.
                                               20181786   ........   G    Providence Equity Partners VIII–A L.P.; NEW Asurion Corporation; Providence Equity Partners VIII–A L.P.
                                               20181787   ........   G    PEP VIII Antares Co-Investment L.P.; NEW Asurion Corporation; PEP VIII Antares Co-Investment L.P.
                                               20181803   ........   G    Odyssey Investment Partners Fund V, LP; AEA Investors Small Business Fund II LP; Odyssey Investment Partners Fund
                                                                            V, LP.




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Document Created: 2018-09-18 01:18:51
Document Modified: 2018-09-18 01:18:51
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionProposed consent agreement.
DatesComments must be received on or before October 12, 2018.
ContactJulia Solomon Ensor (202-326-2377) or Crystal Ostrum (202-326-3405), Bureau of Consumer Protection, 600 Pennsylvania Avenue NW, Washington, DC 20580.
FR Citation83 FR 47161 

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