Analysis of Proposed Consent Order to Aid Public Comment

In the Matter of Sandpiper of California, Inc. and PiperGear USA, Inc. File No. 182 3095

The Federal Trade Commission (“FTC” or “Commission”) has accepted, subject to final

approval, an agreement containing a consent order from Sandpiper of California, Inc. and 

PiperGear USA, Inc. (“Respondents”).

The proposed consent order has been placed on the public record for thirty (30) days for

receipt of comments by interested persons. Comments received during this period will become

part of the public record. After thirty (30) days, the Commission will again review the

agreement and the comments received, and will decide whether it should withdraw from the

agreement or make final the agreement’s proposed order.

This matter involves Respondents’ marketing, sale, and distribution of bags and wallets

with claims that the products are made in the United States. 

According to the FTC’s complaint, Respondents represented that all of their products are 

all or virtually all made in the United States. In fact, more than 95% of Respondent Sandpiper’s 

products are imported as finished goods, and approximately 80% of Respondent PiperGear’s

products are either imported as finished goods or contain significant imported components. 

Based on the foregoing, the complaint alleges that Respondents engaged in deceptive acts or 

practices in violation of Section 5(a) of the FTC Act.

The proposed consent order contains provisions designed to prevent Respondents from 

engaging in similar acts and practices in the future. Consistent with the FTC’s Enforcement 

Policy Statement on U.S. Origin Claims, Part I prohibits Respondents from making U.S.-origin 

claims for their products unless either: (1) the final assembly or processing of the product occurs 

in the United States, all significant processing that goes into the product occurs in the United 

States, and all or virtually all ingredients or components of the product are made and sourced in 

the United States; (2) a clear and conspicuous qualification appears immediately adjacent to the 

representation that accurately conveys the extent to which the product contains foreign parts, 

ingredients or components, and/or processing; or (3) for a claim that a product is assembled in 

the United States, the product is last substantially transformed in the United States, the product’s 

principal assembly takes place in the United States, and United States assembly operations are 

substantial.

Part II prohibits Respondents from making any country-of-origin claim about a product 

or service unless the claim is true, not misleading, and Respondents have a reasonable basis 

substantiating the representation. 

Parts III through VI are reporting and compliance provisions. Part III requires 

Respondents to acknowledge receipt of the order, to provide a copy of the order to certain 

current and future principals, officers, directors, and employees, and to obtain an 

acknowledgement from each such person that they have received a copy of the order. Part IV

requires each Respondent to file a compliance report within one year after the order becomes 

final and to notify the Commission within 14 days of certain changes that would affect 
compliance with the order. Part V requires Respondents to maintain certain records, including 

records necessary to demonstrate compliance with the order. Part VI requires Respondents to 

submit additional compliance reports when requested by the Commission and to permit the 

Commission or its representatives to interview respondent’s personnel.

Finally, Part VII is a “sunset” provision, terminating the order after twenty (20) years, 

with certain exceptions.

The purpose of this analysis is to aid public comment on the proposed order. It is not 

intended to constitute an official interpretation of the proposed order or to modify its terms in 

any way.