The Federal Trade Commission (FTC) has released a proposed consent order that requires a mattress company to pay $753,000 and undertake other obligations because it has repeatedly made false claims that its products were “proudly made with 100% USA-made premium quality materials.” In fact, the FTC found that all or significant portions of the mattresses were sourced with foreign materials and were always finished overseas. The agency concluded that these deceptive acts or practices violated Section 5(a) of the FTC Act.
The proposed order also prohibits the company from making future false claims and requires the company to notify customers of the false claims. Additionally, the company must maintain certain records and file compliance reports with the FTC as requested for the next 20 years.
The most recent action follows a 2018 settlement between the FTC and the same company involving similarly false “Made in USA” claims. In proposing the new consent order, the FTC intends to emphasize that it will take action to prevent similar deceptive practices in the future.
The FTC will accept public comments on the proposed order until November 21, 2021.