(ABC4) – A Utah-based company and its owner Sean Whalen has been forced to pay $211,335 for falsely claiming that its imported apparel is made in the USA, according to the Federal Trade Commission (FTC).
In May 2022, the FTC filed a complaint against the company alleging that Whalen added phony “Made in USA” labels to clothing imported from China and other countries.
Under the order announced Thursday, Whalen and Lions Not Sheep are ordered to stop claiming that products are made in the United States unless they can show that the product’s final assembly or processing — and all significant processing — takes place in the U.S. This includes showing that all components of the products are sourced in the U.S.
Another part of the order requires any “qualified” Made in USA” claims to include “clear and conspicuous disclosure about the extent to which the product contains foreign parts.”
Following the judgment, the FTC has also ordered Whalen and Lions Not Sheep to stop making bogus Made in USA claims and to come clean about foreign production.
This judgment was based on an FTC ruling that took effect beginning August 2021. The ruling declares that If a person introduces, sells, or advertises a commerce product with a “Made in America” or Made in USA” label, the final assembly or processing of the product must occur in the United States, and all significant processing that goes into the product must occur in the U.S., and last, all ingredients or components of the product must be made and sourced in the U.S.
ABC4 has reached out to Lions Not Sheep for comment.