FTC Fines Utah Apparel Company for Swapping ‘Made in China’ Labels With ‘Made in USA’ Ones

Federal Trade Commission seal is seen at a news conference at FTC headquarters in Washington, on July 24, 2019. (Yuri Gripas/Reuters)

The Federal Trade Commission (FTC) has levied a fine on Utah-based apparel company Lions Not Sheep for falsely claiming that its imported apparel was made entirely in the United States.

A fine of $211,335 was imposed on the company and its owner, Sean Whalen, according to a July 28 press release issued by the agency.

Complaint

The FTC originally filed a complaint against Lions Not Sheep in May.

It alleged the enterprise had been removing its “Made in China” tags and replacing them with “Made in USA” on products imported from China and other countries.

According to the agency, it learned about the company’s alleged misconduct when Whalen posted a video to social media claiming he could “conceal the fact that his shirts are made in China by ripping out the origin tags and replacing them with tags stating that the merchandise was made in the United States.”

Sam Levine, director of the FTC’s Bureau of Consumer Protection, stated that the clothing company’s alleged malpractice amounts to cheating its customers and undercutting honest businesses.

Levine further vowed to hold such “companies and their executives accountable for their misconduct.”

“American consumers have the right to know the truth about where their clothes and accessories are made,” he said.

Final Order

In addition to the monetary judgment, Lions Not Sheep was requested to stop making bogus claims about its “Made in USA” products unless it could prove the product’s final assembly or processing takes place in the United States.

“Also under the order, any qualified Made in USA claims must include a clear and conspicuous disclosure about the extent to which the product contains foreign parts, ingredients or components, or processing,” the FTC stated.

“Finally, to claim that a product is assembled in the United States, Whalen and Lions Not Sheep must ensure that it is last substantially transformed in the United States, its principal assembly takes place in the United States, and U.S. assembly operations are substantial,” it added.

According to Deseret News, Lions Not Sheep had earned a reputation over the years for featuring pro-Second Amendment and pro-Trump themes on its products. It also had a roster of celebrity sponsors, including mixed martial arts fighter Donald “Cowboy” Cerrone, Robert O’Neill, and motorcycle racer Davi Millsaps.

The Epoch Times has reached out to Lions Not Sheep for comment.