WASHINGTON, D.C. — the Federal Trade Commission (FTC) recently finalized a consent order against Florida-based EXOTOUSA LLC, operating under the name Old Southern Brass. The FTC charged the company with falsely claiming that its products were manufactured in the U.S., that it was operated by veterans, and that it donated 10% of its sales to military service charities.
The FTC’s complaint, announced in December 2023, highlighted that despite Old Southern Brass’s numerous assertions of being a “Made in USA” company, many of its products were wholly imported from China or contained significant imported content. The company was also found to have falsely claimed affiliation with the U.S. military, including claims of being veteran-operated and contributing a portion of proceeds to military charity groups.
The final order issued by the FTC requires Old Southern Brass to pay $150,000 to the commission, cease making false claims, and adhere to specific requirements relating to future country-of-origin claims. This settlement underscores the FTC’s commitment to holding companies accountable for deceptive marketing and advertising practices.
Notably, the order also includes a monetary judgment of $4,572,137.66 against Old Southern Brass. However, this amount is partially suspended due to the defendants’ inability to pay the full sum. This aspect of the order highlights the potentially severe financial consequences for companies engaging in deceptive practices.
The commission’s unanimous 3-0 vote to approve the final order against Old Southern Brass reinforces the FTC’s dedication to preserving the integrity of product labeling and the importance of transparency in business operations.
This action by the FTC has implications beyond the specific case of Old Southern Brass. It sends a clear message to other businesses that deceptive practices will not be tolerated, particularly when it comes to exploiting patriotic sentiments or the goodwill towards veterans and military charities. It also serves as a reminder to consumers to scrutinize product labels and marketing claims carefully.
Furthermore, this case emphasizes the importance of regulatory oversight in ensuring fair business practices. Without such scrutiny, companies might feel emboldened to make false claims, undermining consumer trust and disadvantaging honest businesses
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