Netbrands Wristbands and Other Customized Products
November 24th, 2021
During our review, we discussed two sets of concerns. First, certain marketing materials, including Google ads and social media materials, may have overstated the extent to which Netbrands offers U.S.-origin products. Specifically, although Netbrands offers some U.S.-origin products and customizes certain products in the United States, it also sells imported products. Second, certain marketing materials may have failed to comply with provisions of the Textile Products Identification Act, 15 U.S.C. § 70 et seq. (“Textile Act”), and implementing rules, 16 C.F.R. Part 303 (“Textile Rules”). Specifically, for some covered products, materials omitted required origin information.
The agency continued:
To come into compliance with Section 5 of the FTC Act, 15 U.S.C. § 45(a) (“Section 5”), and the Textile Act and Textile Rules, Netbrands implemented a remedial action plan. This plan included: (1) clarifying qualified claims, where relevant; (2) updating printed and electronic marketing materials, including social media content; (3) updating product detail pages, where appropriate; (4) seeking more detailed information regarding suppliers’ U.S.-origin claims; (5) making clear, accurate origin disclosures in compliance with the Textile Act and Textile Rules, where relevant; (6) tightening operations to mitigate human error; and (7) offering more robust training for Netbrands’ leadership and relevant employees.
The FTC told the company based on these actions and other factors, it decided not to pursue the investigation any further.
Netbrands is among the first companies to receive a closing letter from the FTC regarding U.S.-origin claims since the agency’s Made in USA Labeling Rule went into effect in August, a direct result of a TINA.org petition for rulemaking filed in 2019. The letter notes that the rule allows the FTC to seek civil penalties of up to $42,792 per violation of the rule.
Find more of our coverage on made in the USA claims here.