FTC Seeks Penalty for Clothing Company Lions Not Sheep and Its Owner for Falsely Labeling Made in USA
The Federal Trade Commission said that apparel company Lions Not Sheep Products and Sean Whalen, its owner, falsely label their products as Made in USA, filing a complaint against the company and its owner. In the filing, FTC said that Lions Not Sheep and Whalen actually imported their clothing and accessories from China and other countries. The commission would have the company stop making the false claims, label the proper country of origin of the products and pay a $211,335 penalty to the commission.
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The Utah-based shop is an apparel company that sells T-shirts, sweatshirts, jackets and sweaters on its own website and through Amazon and Etsy. The products' advertising was heavily linked to its claims of being "Made in the USA." FTC, though, said that the products were entirely imported shirts and hats with limited touchups in the U.S.
FTC submitted as evidence a video published on Whalen's social media accounts in which he details how he hid the true country of origin of the apparel, China. Whalen would rip out the origin tags and replace them with tags saying the goods were made in the U.S. After further investigating the claims, the commissioners then voted 4-0 to issue the complaint.
“Companies that slap phony Made in USA labels on imported goods are cheating their customers and undercutting honest businesses, and we will hold those companies and their executives accountable for their misconduct,” Sam Levine, director of FTC’s Bureau of Consumer Protection, said. “American consumers have the right to know the truth about where their clothes and accessories are made.”