The Federal Trade Commission announced it recently finalized its order against motocross and ATV parts maker Cycra and its officer, Chad James, for falsely claiming that the company’s products were manufactured in the U.S. The FTC’s order, first announced in April 2023 would stop Cycra and James from making deceptive claims about products being “Made in USA” and require them to pay a monetary judgment.
The FTC’s order against Cycra and James includes a number of requirements about the claims the defendants make:
- Restriction on unqualified claims: The company will be prohibited from making unqualified U.S.-origin claims for any product, unless it can show that the product’s final assembly or processing—and all significant processing—takes place in the U.S., and that all or virtually all ingredients or components of the product are made and sourced in the U.S.
- Requirement for qualified claims: The company is required to include in any qualified Made in USA claims a clear and conspicuous disclosure about the extent to which the product contains foreign parts, ingredients or components, or processing.
- Requirement for assembly claims: The company must also ensure, when claiming a product is assembled in the U.S., that it is last substantially transformed in the U.S., its principal assembly takes place in the U.S., and U.S. assembly operations are substantial.
The order includes a monetary judgment of $872,577, which is partially suspended based on an inability to pay. Cycra and James will be required to pay $221,385.66.
The Commission vote to finalize the order was 3-0. The lead staff attorney on this matter was Julia Solomon Ensor in the Bureau of Consumer Protection.
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