UNITED STATES OF AMERICA 


FEDERAL TRADE COMMISSION 


WASHINGTON, D.C. 20580 


Bureau ofConsumer Protection 


Division of Enforcement 


Julia Solomon Ensor 


Attorney 


Email: jensor@ftc.gov 


Direct Dial: (202) 326-2377 


January 18, 2017 

VIAFEDEX 

Adam Harmon, President 

Axis LED Group, LLC 

6810 A very Road 

Dublin, OH 43017 

Dear Mr. Harmon: 

We received your submissions on behalf ofAxis LED Group, LLC, also d/b/a Patriot 

Tube ("Axis" or the "Company"). During our review, we raised concerns that certain marketing 

materials may have overstated the extent to which Axis makes products, including LED tubes, in 

the United States. Specifically, although certain ofAxis's tubes are assembled in the United 

States, those products incorporate significant imported content. 

In the Company's submissions, Axis provided a certificate stating that certain products 

qualify as "Domestic End Products" under the Buy American Act, see 41 U.S.C. §§ 8301-8305 

("BAA"). As you know, BAA establishes price preferences for domestic end products and 

construction materials in government acquisitions, and defines those terms as they are used in 

that limited context. 1 Although truthful claims that products are BAA-compliant convey useful 

information to government purchasers, such claims directed to non-governmental consumers 

likely convey an unqualified "Made in USA" claim.2 

As we discussed, unqualified "Made in USA" or "Built in USA" claims on marketing 

materials likely suggest to consumers that all products advertised in those materials are "all or 

1 See 48 CFR § 25.003 (stating that for purposes of BAA, "domestic end product[s]" and 

"domestic construction material[s]" include, among other things, certain manufactured products 

or materials where either the cost ofthe components mined, produced, or manufactured in the 

United States exceeds 50% ofthe cost of all components, or the product or material is a 

commercially available off-the-shelf item). 

2 See FTC Policy Statement on Deception, 103 F.T.C. 174 (1984) (appended to In re Cliffdale 

Assocs. , Inc., 103 F.T.C. 110, 177-78 (1984) ("When representations or sales practices are 

targeted to a specific audience, the Commission determines the effect ofthe practice on a 

reasonable member ofthat group."). 

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virtually all" made in the United States. The FTC' s Enforcement Policy Statement on "Made in 

USA" and Other U.S. Origin Claims (the "Policy Statement") provides that " [a] product that is 

all or virtually all made in the United States will ordinarily be one in which all significant parts 

and processing that go into the product are of U.S. origin. In other words, where a product is 

labeled or otherwise advertised with an unqualified 'Made in USA' claim, it should contain only 

a de minimis, or negligible, amount of foreign content."3 

The Policy Statement further explains that"'Assembled in USA' claims should be 

limited to those instances where the product has undergone its principal assembly in the United 

States and that assembly is substantial. In addition, a product should be last substantially 

transformed in the United States to properly use an 'Assembled in USA' claim. "4 

To avoid deceiving consumers, you explained that Axis implemented a remedial action 

plan to clarify its representations. The plan included: (1) replacing all affected "Made in USA" 

claims on Axis marketing materials with "Assembled in the USA" claims; and (2) qualifying 

"Buy American Act Compliant" claims on marketing materials not specifically targeted at 

government consumers with "Assembled in the USA" claims. 

Based on your actions and other factors, the staff has decided not to pursue this 

investigation any further. This action should not be construed as a determination that there was 

no violation of Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45. The 

Commission reserves the right to take such further action as the public interest may require. If 

you have any questions, you can reach me at (202) 326-2377. 

Sincerely, 

V\fSITT__ .../ 

Julia Solomon Ensor 

Staff Attorney 

3 Federal Trade Commission, Issuance of Enforcement Policy Statement on "Made in USA " and 

Other U S Origin Claims, 62 Fed. Reg. 63756, 63768 (Dec. 2, 1997). 

4 Id. at 63770. 

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