Braden Perry, Regulatory & Compliance attorney with Kennyhertz Perry, LLC, recently discussed the FTC’s “Made in the USA” enforcement and its impact on business. Mr. Perry described the process and time line of a “Made in the USA” FTC inquiry and the factors a business considers in determining its options, and how cooperation and lines of communication can decrease a potential enforcement action.
In early October 2014, the Federal Trade Commission (FTC) and Defendants Applied Marketing Sciences, LLC, Standard Registration Corporation, Worldwide Information Systems, Incorporated, and Liam O. Moran stipulated to an Order for Permanent Injunction and Monetary Judgment for violations of Section 5 of the FTC Act, 15 U.S.C. §45. The Complaint charged that the defendants participated in deceptive acts or practices in the advertising, marketing, promoting, offering for sale, or selling of prize promotions.
The FTC sued because the above-named defendants were running a sweepstakes in which consumers would receive personalized mailings advising that they had won a cash prize not more than $2 million, and that they needed to pay a twenty or thirty dollar fee to collect their prize. The consumers who paid the fee, mostly individuals over the age of 65, received nothing in return.