172 3052

UNITED STATES OF AMERICA

BEFORE THE FEDERAL TRADE COMMISSION

COMMISSIONERS: Maureen K. Ohlhausen, Acting Chairman

 Terrell McSweeny

____________________________________

)

In the Matter of )

)

BLOCK DIVISION, INC., ) Docket No. C-4613

a corporation. )

)

 )

COMPLAINT

The Federal Trade Commission, having reason to believe that Block Division, Inc., a 

corporation (“Respondent”), has violated the provisions of the Federal Trade Commission Act, 

and it appearing to the Commission that this proceeding is in the public interest, alleges:

1. Respondent Block Division, Inc. (“Block Division”) is a Texas corporation with its 

principal place of business at 618 Front St., Wichita Falls, TX 76301.

2. Respondent advertises, labels, offers for sale, and distributes products to consumers, 

including, but not limited to, pulley blocks. Respondent advertises these products on its website, 

in stores, at trade shows, through social media, and through flyers and pamphlets. Respondent 

offers for sale, sells, and distributes its products throughout the United States.

3. The acts and practices of Respondent alleged in this complaint have been in or affecting 

commerce, as “commerce” is defined in Section 4 of the Federal Trade Commission Act.

4. Respondent has disseminated or has caused to be disseminated advertisements and 

promotional materials for its products. These materials contain the following statements, among 

others:
2

A. “Made in USA”

(Product photograph; Facebook ad); and

B. “Made in the USA American Product”

(Block Division catalogue).
3

5. In numerous instances, including, but not limited to, in the promotional materials 

referenced in Paragraph 4, Respondent has represented, expressly or by implication, that its 

pulley blocks and other products are all or virtually all made in the United States.

6. In fact, Respondent’s pulley blocks and other products incorporate significant imported 

parts essential to the function of Respondent’s products. Among other things, for a period of 

several years, Respondent’s pulleys incorporated imported steel plates that entered the United 

States from overseas already stamped “Made in USA.”

7. Therefore, Respondent’s claims that its products are made in the United States deceive 

consumers.

COUNT I (False or Unsubstantiated Representation)

8. In connection with the manufacturing, labeling, advertising, promotion, offering for sale, 

sale, or distribution of its products, Respondent has represented, directly or indirectly, expressly 

or by implication, that such products, including the parts used to make such products, are all or 

virtually all made in the United States.

9. In fact, in many instances, Respondent’s products include significant imported parts, and 

those parts are essential to the function of Respondent’s pulley blocks. Therefore, the 

representation set forth in Paragraph 8 is false or misleading, or was not substantiated at the time 

the representation was made.

VIOLATION OF SECTION 5

10. The acts and practices of Respondent, as alleged in this complaint, constitute unfair or 

deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal 

Trade Commission Act.

THEREFORE, the Federal Trade Commission, this twelfth day of April, 2017, has 

issued this Complaint against Respondent.

By the Commission.

Donald S. Clark

Secretary

SEAL: