The FTC is Not Sleeping on Allegedly False “Made in USA” Claims by Mattress Company

Cozen O'Connor

Cozen O'Connor

  • The Federal Trade Commission (“FTC”) reached a settlement with Ran Reske, the owner of mattress company Resident Home LLC d/b/a/ Nectar Sleep and other brands (collectively, “Nectar Sleep”), to resolve allegations that Nectar Sleep made false advertising claims in violation of the FTC Act and the FTC’s Made in USA Labeling Rule.
  • According to the complaint, Nectar Sleep allegedly marketed its DreamCloud mattresses as being made with 100 percent U.S.-made materials, when they were actually assembled and finished overseas and often use significant amounts of imported materials. The FTC further alleged that Nectar Sleep violated a 2018 FTC administrative consent order resolving similar allegations regarding misleading U.S.-origin claims.
  • Under the terms of the consent order, which incorporates the terms of the 2018 order, Nectar Sleep will pay $753,000 for consumer redress, is prohibited from making unsupported or unqualified U.S.-origin claims, and must clearly disclose foreign components or processing of its products when making qualified U.S.-origin claims, among other things.
  • As previously reported, the Made in USA Labeling Rule prohibits marketers from including unqualified “Made in the USA” claims on product labels unless: (1) final assembly or processing occurs in the United States; (2) all significant processing for creating the product occurs in the United States; and (3) all or virtually all ingredients or components of the product are made and sourced in the United States.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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