Case 1:15-cv-02127-APM Document 3 Filed 12/10/15 Page 1 of 15 

UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF COLUMBIA 

UNITED STATES OF AMERICA, 

950 Pennsylvania Avenue, N.W. 

Washington, DC 20530, 

Plaintiff, 

v. 

) 

) 

) 

). 

) 

) 

) 

) 

) 

BACKCOUNTRY.COM, LLC, a limited ) 

liability company, 1678 West Redstone ) 

Center Drive, Suite 210, Park City, UT ) 

84098, ) 

Defendant. 

) 

) 

Case No. 15-2127 

STIPULATED JUDGMENT AND ORDER 

FOR CIVIL PENALTIES AND INJUNCTIVE AND OTHER RELIEF 

Plaintiff, the United States of America ("United States"), acting upon notification and 

authorization to the Attorney General by the Federal Trade Commission ("FTC" or 

"Commission"), filed its Complaint for Civil Penalties and Injunctive and Other Relief, pursuant 

to Sections 5, 13, and 16 ofthe Federal Trade Commission Act ("FTC Act"), 15 U.S.C. §§ 45, 

53, and 56, and pursuant to the Textile Fiber Products Identification Act ("Textile Act"), 15 

U.S.C. § 70 et seq., and the Rules and Regulations thereunder ("Textile Rules"), 16 C.F.R. § 303 

et seq. Defendant has waived service of the summons and the Complaint. Plaintiff and 

Defendant stipulate to the entry of this Stipulated Judgment and Order for Civil Penalties and 

Injunctive and Other Relief ("Order") to resolve all matters in dispute in this action between 

them. 
Case 1:15-cv-02127-APM Document 3 Filed 12/10/15 Page 2 of 15 

THEREFORE, lT IS ORDERED as follows: 

FINDINGS 

1. Tbis Court has jurisdiction over this matter. 

2. Tbe Complaint charges that, in marketing and selling rayon textile products as "bamboo," 

Defendant participated in deceptive acts or practices in violation of Section 5 of the FTC 

Act, 15 U.S.C. § 45; engaged in such acts or practices with actual notice that the 

Commission had previously determined them to be unfair or deceptive, 15 U.S.C. § 

45(m)(J )(B); and engaged in mislabeling or deceptive advertising of textile products in 

violation of the Textile Act, 15 U.S.C. § 70 et seq., and the Textile Rules, 16 C.F.R. Part 

303. 

3. The Commission sent Defendant a letter dated January 27,2010 informing Defendant 

that certain acts or practices in connection with the advertising of textile fiber products 

may violate the Textile Act and the Textile Rules and are unfair or deceptive under 

Section 5(a)( I) of the FTC Act, 15 U.S.C. § 45(a)( I). 

4. Defendant neither admits nor denies any of the allegations in the Complaint, except as 

specifically stated in this Order. Only for purposes of this action, Defendant admits the 

facts necessary to establish jurisdiction. 

5. Defendant waives any claim that it may have under the Equal Access to Justice Act, 28 

U.S.C. § 2412, concerning the prosecution of this action through the date of this Order, 

and agrees to bear its own costs and attorney fees. 

6. Defendant and Plaintiff waive all rights to appeal or otherwise challenge or contest the 

validity of this Order. 

7. Entry of this Order is in the public interest. 

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DEFINITIONS 

For the purpose of this Order, the following definitions shall apply: 

A. "Covered product" shall mean any or all of the following products sold by 

Defendant, unless Defendant does not have an ownership interest in such product 

and prior to the point of purchase clearly and conspicuously informs consumers 

that there is a third-party seller for that product: (1) any article of wearing 

apparel, costume or accessory, drapery, floor covering, furnishing, bedding, or 

other textile good of a type customarily used in a household, regardless of where 

used, that is made, in whole or in part, of yam or fabric comprised, in whole or in 

part, of a manufactured fiber, as that term is defined herein; or (2) any fiber, yarn, 

or fabric comprised, in whole or in part, of a manufactured fiber, as that term is 

defined herein, whether in the finished or unfinished state, used or intended for 

use in any such textile good. 

B. "Defendant" means "Backcountry.com, LLC," and its successors and assigns. 

C. "Fiber trademark" shall mean a word or words used to identify a particular fiber 

sold by a person and to distinguish it from fibers of the same generic class sold by 

others, as defined in 16 C.F.R. § 303.l(r). 

D. "FTC" or "Commission" means the Federal Trade Commission. 

E. "Generic name of any manufactured fiber" shall mean any name for a textile fiber 

established and defined by the Commission pursuant to Section 70e(c) of the 

Textile Act, as set forth in 16 C.F.R. § 303.7. 

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F. "Manufactured fiber" shall mean any fiber derived by a process of manufacture 

from any substance which, at any point in the manufacturing process, is not a 

fiber, as defined in 15 U.S.C. § 70(d). 

G. "Required information" shall mean such information as is required to be disclosed 

on labels or invoices and in advertising under the Textile Act, 15 U.S.C. § 70 et 

seq., and under the Textile Rules, 16 C.F.R. Part 303, as defined in 16 C.F.R. 

§ 303.1(e). 

I. PROHIBITION ON VIOLATING THE TEXTILE ACT AND TEXTILE RULES 

IT IS FURTHER ORDERED that Defendant, directly or through any corporation, division, 

or other device, in connection with the manufacturing, labeling, advertising, promotion, offering 

for sale, sale, or distribution of any covered product, are permanently restrained and enjoined 

from violating any provision of the Textile Act or Textile Rules, including but not limited to: 

A. Selling, offering for sale, or advertising in commerce any covered product that is 

falsely or deceptively stamped, tagged, labeled, invoiced, advertised, or otherwise 

identified as to the name or amount of constituent fibers contained therein. 

15 U.S.C. §§ 70a, 70b. 

B. Failing to use the recognized generic name of any manufactured fiber in the 

required information in any labels, invoices, or advertising of any covered 

product. 16 C.F.R. §§ 303.6 and 303.7. 

C. Failing to include all required information on labels for any covered product, 

including identifying: 

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Case 1:15-cv-02127-APM Document 3 Filed 12/10/15 Page 5 of 15 

1 . the generic names and percentages by weight of the constituent fibers 

present in the covered product, in amounts of 5 percent or more and in the 

order of predominance, as set forth in 16 C.P.R.§ 303.J6(a)(l); 

2. the name or registered identification number issued by the Commission of 

the manufacturer or of one or more persons marketing or handling the 

covered product, 16 C.P.R. § 303.16(a)(2); and 

3. the name of the country where such covered product was processed or 

manufactured, as provided for in 16 C.F.R. § 303.33. 

15 U.S.C. § 70b(b), 16 C.P.R.§§ 303.16 and 303.42(a). 

D. Failing to ensure that any fiber trademark or generic name used on the label of, or 

in any advertising for, any covered product: 

1. is not false, deceptive, or misleading as to fiber content; and 

2. does not indicate, directly or indirectly, that the covered product is 

composed wholly or in part of a particular fiber, when such is not the case. 

16 C.P.R.§§ 303.17(d) and 303.4l(d). 

E. Failing to ensure that any non-required information or representation used on the 

label of, or in the advertising for, any covered product: 

l. does not interfere with, minimize, detract from, or conflict with required 

information; 

2. does not include any names, terms, or representations prohibited by the 

Textile Act or Textile Rules; and 

3. is not false, deceptive, or misleading. 

16 C.P.R.§§ 303.16(c) and 303.42(b). 

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F. Where a covered product is advertised in such manner as to require disclosure of 

the information required by the Textile Act and Textile Rules, failing to include 

all parts ofthe required information in immediate conjunction with each other in 

legible and conspicuous type or lettering of equal size and prominence. 

16 C.F.R. § 303.42(a). 

G. Where a fiber trademark is used in advertising a covered product, failing: 

I. to include the generic name of the fiber contained in such covered product 

in immediate proximity to and in conjunction with such fiber trademark; 

and 

2. to include a full disclosure of the tiber content information required by the 

Textile Act and Textile Rules in at least one instance in any such 

advertisement. 

16 C.F.R. § 303.41. 

H. Failing to ensure that any words, coined words, symbols or depictions used in the 

labeling or advertising of a covered product which: 

1. constitute or imply the name or designation of a fiber; 

2. are phonetically similar to the name or designation of a fiber; or 

3. are only a slight variation of spelling from the name or designation of a 

fiber 

are not used in such a manner as to represent or imply that such fiber is present in 

the covered product, unless such fiber is actually present in that product. 

16 C.F.R. § 303.18. 

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Case 1:15-cv-02127-APM Document 3 Filed 12/10/15 Page 7 of 15 

I. Failing to maintain for at least three (3) years required records for any covered 

products manufactured by Defendant, including records showing the fiber 

content. 15 U.S.C. § 70d(b); 16 C.F.R. § 303.39. 

Provided, further, that nothing in this Order shall prohibit Defendant from complying 

with the Textile Act and Textile Rules by establishing that it received and maintained in good 

faith a guaranty, which complies fully with Section 70h of the Textile Act, 15 U.S.C. § 70h, and 

with Sections 303.36-303.38 ofthe Textile Rules, 16 C.F.R. §§ 303.36-303.38, that such 

covered product is not misbranded or falsely invoiced. A guaranty shall not be received or 

maintained in good faith after the Defendant knows or should have known that products covered 

by the guaranty are or likely may be mislabeled or deceptively advertised, including after being 

notified by the Commission that such products are or likely may be mislabeled or deceptively 

advertised. 

Provided, further, that if it is not legally possible to obtain a guaranty at the time 

Defendant takes an ownership interest in a covered product, and (1) Defendant does not 

embellish or misrepresent claims provided by the manufacturer about a covered product, and (2) 

the covered product is not sold by Defendant as a private label product, then Defendant shall 

only be liable for a violation of this Section if it knew or should have known that the marketing 

or sale of the covered product would violate this Section. 

Provided, further, that in the event the Textile Act or Textile Rules are amended or 

modified, nothing in this Section shall impose upon Defendant obligations that go beyond what 

is required under the amended or modified version of the Textile Act or Textile Rules. 

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Case 1:15-cv-02127-APM Document 3 Filed 12/10/15 Page 8 of 15 

II. SETTLEMENT PAYMENT 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of $150,000.00 is entered in favor of Plaintiff against Defendant. 

B. Defendant is ordered to pay to Plaintiff, by making payment to the Treasurer of the 

United States, $150,000.00, which, as Defendant stipulates, its undersigned counsel holds 

in escrow for no purpose other than payment to Plaintiff. Such payment must be made 

within 7 days of entry of this Order by electronic fund transfer in accordance with 

instructions previously provided by a representative of the Plaintiff. 

C. In the event of any default in payment, which default continues for ten (I 0) days beyond 

the due date of payment, the entire unpaid amount, together with interest, as computed 

pursuant to 28 U.S. C. § 1961 from the date of default to the date of payment, shall 

immediately become due and payable. 

D. Defendant shall cooperate fully with the United States and the Commission and their 

agents in all attempts to collect the amount due pursuant to this Paragraph if Defendant 

fails to pay fully the amount due at the time specified herein. ln such an evenl, 

Defendant agrees to provide the United States and the Commission with its federal and 

state tax returns for the preceding two (2) years and to complete standard financial 

disclosure forms fully and accurately within ten (10) business days of receiving a request 

from the United States or the Commission to do so. Defendant further authorizes the 

United States and the Commission to verify all information provided on its financial 

disclosure forms with appropriate third parties, including but not limited to financial 

institutions. 

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E. In accordance with 31 U.S.C. § 7701, Defendant is hereby required, unless it has done so 

already, to furnish to the United States and the Commission, its taxpayer identification 

number (employer identification number), which shall be used for purposes of collecting 

and reporting on any delinquent amount arising out of Defendant's relationship with the 

government. 

F. Defendant relinquishes all dominion, control, and title to the funds paid to the fullest 

extent permitted by law. Defendant shall make no claim to or demand for return of the 

funds, directly or indirectly, through counsel or otherwise. 

III. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring and investigating 

Defendant's compliance with this Order and any failure to transfer any assets as required by this 

Order: 

A. Within 30 days of receipt of written notice from a representative of the United States 

or the Commission, Defendant must: submit additional compliance reports or other 

requested information, which must be sworn under penalty of perjury; appear for 

depositions; and produce documents for inspection and copying. The Plaintiff and 

Commission are also authorized to obtain discovery, without further leave of court, 

using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 

(including telephonic depositions), 31, 33, 34, 36, 45, and 69. 

B. For matters concerning this Order, the Plaintiff and Commission are authorized to 

communicate directly with Defendant. Defendant must permit representatives of the 

Plaintiff and Commission to interview any employee or other person affiliated with 

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Case 1:15-cv-02127-APM Document 3 Filed 12110/15 Page 10 of 15 

Defendant who has agreed to such an interview. The person interviewed may have 

counsel present. 

C. The Plaintiff and Commission may use all other lawful means, including posing, 

through its representatives, as consumers, suppliers, or other individuals or entities, 

to Defendant or any individual or entity affiliated with Defendant, without the 

necessity of identification or prior notice. Nothing in this Order limits the 

Commission's lawful use of compulsory process, pursuant to Sections 9 and 20 of the 

FTC Act, 15 U.S.C. §§ 49, 57b-l. 

IV. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendant make timely submissions to the 

Commission: 

A. One year after entry of this Order, Defendant must submit a compliance report, 

sworn under penalty of perjury: 

a. Defendant must: (a) identify the primary physical, postal, and email address 

and telephone number, as designated points of contact, which representatives 

of the Plaintiff and Commission may use to communicate with Defendant; (b) 

identify all ofDefendant's businesses by all of their names, telephone 

numbers, and physical, postal, email, and Jnternet addresses; (c) describe the 

activities of each business, including the goods and services offered and the 

means of advertising, marketing, and sales; (d) describe in detail whether and 

how Defendant is in compliance with each Section of this Order; and (e) 

provide a copy of each Order Acknowledgement obtained pursuant to this 

Order, unless previously submitted to the Commission. 

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Case 1:15-cv-02127-APM Document 3 Filed 12/10/15 Page 11 of 15 

B. For 5 years after entry of this Order, Defendant must submit a compliance notice, 

sworn under penalty of perjury, within 14 days of any change in the following: 

(a) any designated point of contact; or (b) the structure of Defendant or any entity 

that Defendant has any ownership interest in or controls directly or indirectly that 

may affect compliance obligations arising under this Order, including: creation, 

merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that 

engages in any acts or practices subject to this Order. 

C. Defendant must submit to the Commission notice of the filing of any bankruptcy 

petition, insolvency proceeding, or similar proceeding by or against Defendant 

within 14 days of its filing. 

D. Any submission to the Commission required by this Order to be sworn under 

penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, 

such as by concluding: " I declare under penalty of perjury under the laws of the 

United States of America that the foregoing is true and correct. Executed on: 

___ " and supplying the date, signatory's full name, title (if applicable), and 

signature. 

E. Unless otherwise directed by a Commission representative in writing, all 

submissions to the Commission pursuant to this Order must be emailed to 

mailto:DEBrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) 

to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal 

Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580. 

The subject line must begin: United States v. Backcountry.com, LLC, Case No. 

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Case 1:15-cv-02127 -APM Document 3 Filed 12/10115 Page 12 of 15 

V. RECORDKEEPING 

IT 18 FURTHER ORDERED that Defendant must create certain records for 5 years 

after entry of the Order, and retain each such record for 5 years. Specifically, Defendant, in 

connection with the marketing and/or sale of covered products, must create and retain the 

foUowing records: 

Order: 

A. Accounting records that reflect the cost of goods or services sold, revenues 

generated, and the disbursement of such revenues; 

B. Personnel records showing, for each person employed by Defendant as a manager 

having responsibilities for Defendant's marketing or sale of textile products in 

any category that Defendant uses to organize its business (e.g., apparel, home, 

baby, etc.), that person's: name; addresses; telephone numbers; job title or 

position; dates of service; and (if applicable) the reason for termination; 

C. Customer files containing the names, addresses, phone numbers, dollar amounts 

paid, quantity of items or services purchased, and description of items or services 

purchased, to the extent such information is obtained in the ordinary course of 

business; and 

D. All records and documents necessary to demonstrate full compliance with each 

provision of this Order, including all submissions to the Commission. 

VI. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendant obtain acknowledgments of receipt of this 

A. Defendant, within 7 days of entry of this Order, must submit to the Commission an 

acknowledgment of receipt ofthis Order sworn under penalty of perjury. 

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Case 1:15-cv-02127-APM Document 3 Filed 12/10/15 Page 13 of 15 

B. For 5 years after entry ofthis Order, Defendant must deliver a copy of this Order to: 

(1) all of its managers having responsibilities for Defendant's marketing or sale of 

textile products in any category that Defendant uses to organize its business (e.g., 

apparel, home, baby, etc.); and (2) any business entity resulting from any change in 

structure as set forth in the Section titled "Compliance Reporting." For current 

personnel, delivery shall be within thirty (30) days of service of this Order upon 

Defendant. For all others, delivery must occur before they assume their 

responsibilities. 

C. From each individual or entity to which a Defendant delivered a copy of this Order, 

Defendant must obtain, within 30 days, a signed and dated acknowledgment of 

receipt of this Order. 

VII. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 

purposes of construction, modification, and enforcement of this Order. 

SO ORDERED this \()-»-.day of X..t.u."W , 2015. 

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Case 1:15-cv-02127-APM Document 3 Filed 12/10/15 Page 14 of 15 

STIPULATED AND AG.REED TO: 

FOR THE COMMISSION: 

JAMES A. KOHM, 

Associate Dlrootot' fo1· Enforcement 

DOUGLAS V. WOLFE, 

Asailltant Director for Enforcomant 

;'/};,~~ ~EW NG FELIX 

DC Bar No. S02003 

AMANDA B. KOS'INER 

DC Bar No. 983 188 

Attorneys 

Federa I Trado Commission 

Division ofEnfo~ement 

600 Pennsylvania Avenue, N.W. 

Mail Drop CG-9528 

WashJngton, DC 20580 

202-326-3556, kfelix@ftc.gov 

202--326-2880, akostner@ftc.gov 

202·326-3197 (fax) 

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FOR TJJE DEFENDANT: 

VENABLE, LLP 

Attorneys fur De&ndant 

Buckc.1ountry.uom, LLC i.dr- JEl:FRBY D. KNOWLES 

RANDAL M. SHAHEEN 

Venable .. LLP 

515 7th Street, NW 

Washington, DC 20004-1601 

202-344-4860 · es a enable com 

202-3 3 
Case 1:15-cv-02127-APM Document 3 Filed 12/10/15 Page 15 of 15 

FOR THE PLAINTIFF 

UNITED STATES OF AMERICA: 

BENJAMIN C. MIZER 

Principal Deputy Assistant Attorney General 

JONATHAN F. OUN 

Deputy Assistant Attorney General 

MICHAEL S. BLUME 

Director 

Consumer Protection Branch 

ANDREW E. CLARK 

Assistant Director 

/s/ Jacgueljne Blaesi-Freed 

Trial 1\ Horney 

Consumer Protection Branch 

U.S. Department of Justice 

P.O. Box 386 

Washington, DC 20044 

Tel: (202) 353-2809 

Fax: (202) 5 I 4-8742 

Jacqucline.m.blaesi-freed@usdoj.gov 

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