[1823095] 

UNITED STATES OF AMERICA 

BEFORE THE FEDERAL TRADE COMMISSION 

COMMISSIONERS: Joseph J. Simons, Chairman 

Noah Joshua Phillips 

Rohit Chopra 

Rebecca Kelly Slaughter 

Christine S. Wilson 

In the Matter of 

DECISION AND ORDER 

SANDPIPER OF CALIFORNIA, INC., a corporation 

DOCKET NO. C-4675 and 

PIPERGEAR USA, INC., a corporation. 

DECISION 

The Federal Trade Commission (“Commission”) initiated an investigation of certain acts 

and practices of the Respondents named in the caption. The Commission’s Bureau of Consumer 

Protection (“BCP”) prepared and furnished to Respondents a draft Complaint. BCP proposed to 

present the draft Complaint to the Commission for its consideration. If issued by the 

Commission, the draft Complaint would charge the Respondents with violations of the Federal 

Trade Commission Act. 

Respondents and BCP thereafter executed an Agreement Containing Consent Order 

(“Consent Agreement”). The Consent Agreement includes: 1) statements by Respondents that 

they neither admit nor deny any of the allegations in the Complaint, except as specifically stated 

in this Decision and Order, and that only for purposes of this action, they admit the facts 

necessary to establish jurisdiction; and 2) waivers and other provisions as required by the 

Commission’s Rules. 

The Commission considered the matter and determined that it had reason to believe that 

Respondents have violated the Federal Trade Commission Act, and that a Complaint should 

issue stating its charges in that respect. The Commission accepted the executed Consent 

Agreement and placed it on the public record for a period of 30 days for the receipt and 

consideration of public comments. The Commission duly considered any comments received 

from interested persons pursuant to Section 2.34 of its Rules, 16 C.F.R. § 2.34. Now, in further 

conformity with the procedure prescribed in Rule 2.34, the Commission issues its Complaint, 

makes the following Findings, and issues the following Order: 

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Findings 

1. The Respondents are: 

a. Sandpiper of California, Inc., a California corporation with its principal office or 

place of business at 687 Anita Street, Suite A, Chula Vista, CA 91911. 

b. PiperGear USA, Inc., a California corporation with its principal office or place of 

business at 687 Anita Street, Suite A, Chula Vista, CA 91911. 

2. The Commission has jurisdiction over the subject matter of this proceeding and over 

Respondents, and the proceeding is in the public interest. 

ORDER 

Definitions 

For purposes of this Order, the following definitions apply: 

A. “Clear(ly) and conspicuous(ly)” means that a required disclosure is difficult to miss (i.e., 

easily noticeable) and easily understandable by ordinary consumers, including in all of 

the following ways: 

1. In any communication that is solely visual or solely audible, the disclosure must be 

made through the same means through which the communication is presented. In any 

communication made through both visual and audible means, such as a television 

advertisement, the disclosure must be presented simultaneously in both the visual and 

audible portions of the communication even if the representation requiring the 

disclosure (“triggering representation”) is made through only one means. 

2. A visual disclosure, by its size, contrast, location, the length of time it appears, and 

other characteristics, must stand out from any accompanying text or other visual 

elements so that it is easily noticed, read, and understood. 

3. An audible disclosure, including by telephone or streaming video, must be delivered 

in a volume, speed, and cadence sufficient for ordinary consumers to easily hear and 

understand it. 

4. In any communication using an interactive electronic medium, such as the Internet or 

software, the disclosure must be unavoidable. 

5. On a product label, the disclosure must be presented on the same display panel as the 

claim being qualified. 

6. The disclosure must use diction and syntax understandable to ordinary consumers and 

must appear in each language in which the triggering representation appears. 

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7. The disclosure must comply with these requirements in each medium through which 

it is received, including all electronic devices and face-to-face communications. 

8. The disclosure must not be contradicted or mitigated by, or inconsistent with, 

anything else in the communication. 

9. When the representation or sales practice targets a specific audience, such as children, 

the elderly, or the terminally ill, “ordinary consumers” includes reasonable members 

of that group. 

B. “Made in the United States” means any representation, express or implied, that a product 

or service, or a specified component thereof, is of U.S.-origin, including, but not limited 

to, a representation that such product or service is “made,” “manufactured,” “built,” or 

“produced” in the United States or in America, or any other U.S.-origin claim. 

C. “Respondents” means Sandpiper of California, Inc. and PiperGear USA, Inc. and their 

successors and assigns, individually, collectively, or in any combination. 

Provisions 

I. 

PROHIBITED MISREPRESENTATIONS REGARDING U.S. ORIGIN CLAIMS 

IT IS ORDERED that Respondents, and Respondents’ officers, agents, employees, and 

attorneys, and all other persons in active concert or participation with any of them, who receive 

actual notice of this Order, whether acting directly or indirectly, in connection with the 

manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any 

backpack or travel bag, or any other product or service, must not make any representation, 

expressly or by implication, that a product or service is Made in the United States unless: 

A. 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; or 

B. 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 

C. 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. 

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II. 

SUBSTANTIATION 

IT IS FURTHER ORDERED that Respondents, Respondents’ officers, agents, 

employees, and attorneys, and all other persons in active concert or participation with any of 

them, who receive actual notice of this Order, whether acting directly or indirectly, in connection 

with the manufacturing, labeling, advertising, promotion, offering for sale, sale or distribution of 

any product or service, must not make any representation, expressly or by implication, regarding 

the country of origin of any product or service unless the representation is non-misleading, 

including that, at the time it is made, Respondents possess and rely upon a reasonable basis for 

the representation. 

III. 

ACKNOWLEDGMENTS OF THE ORDER 

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

Order: 

A. Each Respondent, within 10 days after the effective date of this Order, must submit to the 

Commission an acknowledgment of receipt of this Order sworn under penalty of perjury. 

B. For 20 years after the issuance date of this Order, each Respondent must deliver a copy of 

this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) 

all employees having managerial responsibilities for conduct related to the subject matter 

of the Order, and all agents and representatives having managerial responsibilities for 

conduct related to the subject matter of the Order; and (3) any business entity resulting 

from any change in structure as set forth in the Provision titled Compliance Reports and 

Notices. Delivery must occur within 10 days after the effective date of this Order for 

current personnel. For all others, delivery must occur within 10 days of when they 

assume their responsibilities. 

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

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

of this Order. 

IV. 

COMPLIANCE REPORTS AND NOTICES 

IT IS FURTHER ORDERED that Respondents make timely submissions to the 

Commission: 

A. One year after the issuance date of this Order, each Respondent must submit a 

compliance report, sworn under penalty of perjury, in which each Respondent must: 

(a) identify the primary physical, postal, and email address and telephone number, as 

designated points of contact, which representatives of the Commission, may use to 

communicate with Respondent; (b) identify all of that Respondent’s businesses by all of 

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their names, telephone numbers, and physical, postal, email, and Internet addresses; 

(c) describe the activities of each business, including the goods and services offered, the 

means of advertising, marketing, and sales, and the involvement of any other 

Respondent; (d) describe in detail whether and how that Respondent is in compliance 

with each Provision of this Order, including a discussion of all of the changes the 

Respondent made to comply with the Order; and (e) provide a copy of each 

Acknowledgment of the Order obtained pursuant to this Order, unless previously 

submitted to the Commission. 

B. Each Respondent 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 any Respondent or any entity that Respondent 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. Each Respondent must submit notice of the filing of any bankruptcy petition, insolvency 

proceeding, or similar proceeding by or against such Respondent 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 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: In re Sandpiper of 

California, Inc. 

V. 

RECORDKEEPING 

IT IS FURTHER ORDERED that Respondents must create certain records for 20 years 

after the issuance date of the Order, and retain each such record for 5 years, unless otherwise 

specified below. Specifically, each Respondent must create and retain the following records: 

A. Accounting records showing the revenues from all goods or services sold, the costs 

incurred in generating those revenues, and resulting net profit or loss; 

B. Personnel records showing, for each person providing services in relation to any aspect of 

the Order, whether as an employee or otherwise, that person’s: name; addresses; 

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telephone numbers; job title or position; dates of service; and (if applicable) the reason 

for termination; 

C. Copies or records of all consumer complaints and refund requests concerning the subject 

matter of the Order, whether received directly or indirectly, such as through a third party, 

and any response; 

D. All records necessary to demonstrate full compliance with each provision of this Order, 

including all submissions to the Commission; 

E. A copy of each unique advertisement or other marketing material making a representation 

subject to this Order; and 

F. For 5 years from the date of the last dissemination of any representation covered by this 

Order: 

1. All materials that were relied upon in making the representation; and 

2. All evidence in each Respondent’s possession, custody, or control that contradicts, 

qualifies, or otherwise calls into question the representation, or the basis relied upon 

for the representation, including complaints and other communications with 

consumers or with governmental or consumer protection organizations. 

VI. 

COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring Respondents’ 

compliance with this Order: 

A. Within 10 days of receipt of a written request from a representative of the Commission, 

each Respondent must: submit additional compliance reports or other requested 

information, which must be sworn under penalty of perjury, and produce records for 

inspection and copying. 

B. For matters concerning this Order, representatives of the Commission are authorized to 

communicate directly with each Respondent. Respondents must permit representatives 

of the Commission to interview anyone affiliated with any Respondent who has agreed to 

such an interview. The interviewee may have counsel present. 

C. The Commission may use all other lawful means, including posing through its 

representatives as consumers, suppliers, or other individuals or entities, to Respondents or 

any individual or entity affiliated with Respondents, 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-1. 

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VII. 

ORDER EFFECTIVE DATES 

IT IS FURTHER ORDERED that this Order is final and effective upon the date of its 

publication on the Commission’s website (ftc.gov) as a final order. This Order shall terminate 

on April 16th, 2039, or 20 years from the most recent date that the United States or the 

Commission files a complaint (with or without an accompanying settlement) in federal court 

alleging any violation of this Order, whichever comes later; provided, however, that the filing of 

such a complaint will not affect the duration of: 

A. Any Provision in this Order that terminates in less than 20 years; 

B. This Order’s application to any Respondent that is not named as a defendant in such 

complaint; and 

C. This Order if such complaint is filed after the Order has terminated pursuant to this 

Provision. 

Provided, further, that if such complaint is dismissed or a federal court rules that the Respondent 

did not violate any provision of the Order, and the dismissal or ruling is either not appealed or 

upheld on appeal, then the Order will terminate according to this Provision as though the 

complaint had never been filed, except that the Order will not terminate between the date such 

complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date 

such dismissal or ruling is upheld on appeal. 

By the Commission, Commissioner Slaughter and Commissioner Chopra dissenting. 

April J. Tabor 

Acting Secretary 

SEAL: 

ISSUED: April 16, 2019

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