Case: 1:16-cv-00228-PAG Doc #: 53 Filed: 10/13/16 1 of 14. PageID #: 571 

UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF OHIO 

FEDERAL TRADE COMMISSION 

 Plaintiff, 

v. 

CHEMENCE, INC., an Ohio corporation, 

 Defendant. 

Case No. 1:16-cv-228-PAG 

STIPULATED ORDER FOR 

PERMANENT INJUNCTION AND 

MONETARY JUDGMENT 

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its Complaint 

for Permanent Injunction and Other Equitable Relief (“Complaint”), for a permanent injunction 

and other equitable relief in this matter, pursuant to Section 13(b) of the Federal Trade 

Commission Act (“FTC Act”), 15 U.S.C. § 53(b). The Commission and Defendant stipulate to 

the entry of this Stipulated Order for Permanent Injunction and Monetary Judgment (“Order”) to 

resolve all matters in dispute in this action between them. 

THEREFORE, IT IS ORDERED as follows: 

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Exhibit B 

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FINDINGS 

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendant participated in deceptive acts or practices in 

violation of Section 5 of the FTC Act, 15 U.S.C. § 45, in the manufacturing, labeling, 

advertising, promotion, offering for sale, sale, or distribution of cyanoacrylate glue as “Made in 

the USA” or “Proudly Made in the USA.” 

3. 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. 

4. 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. 

5. Defendant waives all rights to appeal or otherwise challenge or contest the validity of this 

Order. 

DEFINITIONS 

For the purpose 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 

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Exhibit B 

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

the claim being qualified. 

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

and must appear in each language in which the representation that requires the 

disclosure appears. 

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

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

communications. 

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

anything else in the communication. 

8. 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. 

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Exhibit B 

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B. “Made in the United States” shall mean 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 any other U.S.-origin claim. 

C. “Product or Service” means any good or service offered by Defendant. 

ORDER 

I. PROHIBITION AGAINST MISREPRESENTATIONS 

IT IS FURTHER ORDERED that Defendant, and Defendant’s 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 

cyanoacrylate glue or any other Product or Service are permanently restrained and enjoined from 

misrepresenting, expressly or by implication, that a Product or Service is Made in the United 

States, unless: 

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; or 

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, and/or processing. 

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Exhibit B 

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II. MEANS AND INSTRUMENTALITIES 

IT IS FURTHER ORDERED that Defendant, and Defendant’s 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 

cyanoacrylate glue or any other Product or Service must not provide to others the means and 

instrumentalities with which to make any representation prohibited by Part I above. For the 

purposes of this Part, “means and instrumentalities” means any information, including, but not 

necessarily limited to, any advertising, labeling, promotional, sales training, or purported 

substantiation materials, for use by trade customers in its marketing of any Product or Service. 

III. MONETARY JUDGMENT 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of Two Hundred Twenty Thousand ($220,000) is entered in 

favor of the Commission against Defendant as equitable monetary relief. 

B. Defendant is ordered to pay to the Commission Two Hundred Twenty Thousand 

($220,000), which, as Defendant stipulates, its undersigned counsel holds in escrow for no 

purpose other than payment to the Commission. 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 Commission. 

C. Defendant relinquishes dominion and all legal and equitable right, title, and interest in all 

assets transferred pursuant to this Order and may not seek the return of any assets. 

D. The facts alleged in the Complaint will be taken as true, without further proof, in any 

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Exhibit B 

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subsequent civil litigation by or on behalf of the Commission, including in a proceeding to 

enforce its rights to any payment or monetary judgment pursuant to this Order, such as a 

nondischargeability complaint in any bankruptcy case. 

E. The facts alleged in the Complaint establish all elements necessary to sustain an action 

by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. 

§ 523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes. 

F. Defendant acknowledges that its Taxpayer Identification Numbers (Employer 

Identification Numbers), which Defendant must submit to the Commission, may be used for 

collecting and reporting on any delinquent amount arising out of this Order, in accordance with 

31 U.S.C. §7701. 

G. All money paid to the Commission pursuant to this Order may be deposited into a fund 

administered by the Commission or its designee to be used for equitable relief, including 

consumer redress and any attendant expenses for the administration of any redress fund. If a 

representative of the Commission decides that direct redress to consumers is wholly or partially 

impracticable or money remains after redress is completed, the Commission may apply any 

remaining money for such other equitable relief (including consumer information remedies) as it 

determines to be reasonably related to Defendant’s practices alleged in the Complaint. Any 

money not used for such equitable relief is to be deposited to the U.S. Treasury as disgorgement. 

Defendant has no right to challenge any actions the Commission or its representatives may take 

pursuant to this Subsection. 

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Exhibit B 

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IV. ORDER ACKNOWLEDGMENTS 

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

Order: 

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

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

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

(1) all principals, officers, directors, and LLC managers and members; (2) all employees, agents, 

and representatives who participate in 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 Section titled 

Compliance Reporting. Delivery must occur within 7 days of entry of this Order for current 

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

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

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

Order. 

V. 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. Defendant 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 Defendant; (b) identify all of Defendant’s businesses 

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

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Exhibit B 

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

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

Commission. 

B. For 20 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 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 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, 

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Exhibit B 

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DC 20580. The subject line must begin: FTC v. Chemence, Inc. 

VI. RECORDKEEPING 

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

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

create and retain the following records: 

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

B. Personnel records showing, for each person providing services, whether as an employee 

or otherwise, that person’s: name; addresses; telephone numbers; job title or position; dates of 

service; and (if applicable) the reason for termination; 

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

including all submissions to the Commission; 

D. A copy of each unique advertisement or other marketing material; 

E. All materials that were relied upon in disseminating the representation; and 

F. All tests, reports, studies, surveys, demonstrations, or other evidence in its possession or 

control that contradict, qualify, or call 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. 

VII. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendant’s compliance 

with this Order, including any failure to transfer any assets as required by this Order: 

A. Within 14 days of receipt of a written request from a representative of the Commission, 

Defendant must: submit additional compliance reports or other requested information, which 

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Exhibit B 

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must be sworn under penalty of perjmy; appear for depositions; and produce documents for 

inspection and copying. The Co1mnission is also authorized to obtain discove1y, without fmiher 

leave of com1, using any of the procedmes 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 Cormnission is authorized to communicate 

directly with Defendant. Defendant must pennit representatives of the Connnission to i11te1view 

any employee or other person affiliated with Defendant who has agreed to such an interview. 

The person inte1viewed may have counsel present. 

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

representatives as consmners, 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 Co1mnission's lawful use of compulso1y process, 

pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1. 

VIII. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Com1 retains jurisdiction of this matter for 

pmposes of constrnction, modification, and enforcement of this Order. 

SO ORDERED this l 3th day of _ o_c_to_b_e_r _______ , 201~. 

Isl Patricia A. Gaughan 

PATRICIA A. GAUGHAN 

UNITED STATES DISTRICT mDGE 

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Exhibit B 

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SO STIPULATED AND AGREED: 

FOR PLAINTIFF: 

Julia Solomon Ensor 

Colin D. A. MacDonald 

Federal Trade Commission 

600 Pennsylvania Ave. NW 

Mail-Stop CC-9528 

Washington, DC 20580 

202-326-23 77 (Ensor) 

202-326-3192 (MacDonald) 

202-326-3197 (Fax) 

j ensor@ftc.gov 

cmacdonald@ftc.gov 

Attorneys for Plaintiff 

FEDERAL TRADE COMMISSION 

11 

Case: 1:16-cv-00228-PAG Doc #: 53 Filed: 10/13/16 11 of 14. PageID #: 581 
Erika Frank - Reg.# 0095179 

Mac Murray, Petersen & Shuster LLP 

6530 West Campus Oval, Suite 210 

New Albany, Ohio 43054 

· Telephone: 614-939-9955 

Facsimile: 614-939-9954 

E-mail: hmacmurray@mpslawyers.com E-mail: lmessner@mpslayers.com E-mail: efrank@mpslawyers.com 

Attorneys for Defendant 

CHEMENCE, INC. 

DEFENDANT: Chemence, Inc. 

Date: August 2, 2016 

Hugh Cooke President, Chemence, Inc. 

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Exhibit B 

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UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF OHIO 

FEDERAL TRADE COMMISSION 

 Plaintiff, 

v. 

CHEMENCE, INC., an Ohio corporation, 

 Defendant. 

Case No. 1:16-cv-228-PAG 

ACKNOWLEDGMENT BY 

AFFIDAVIT OF RECEIPT 

OF ORDER BY 

DEFENDANT CHEMENCE, 

INC.

1. My name is ___________, my job title is ___________, and I am authorized to accept 

service of process on Chemence, Inc.. I am a U.S. citizen over the age of eighteen, and I have 

personal knowledge of the facts set forth in this Acknowledgment. 

2. Chemence, Inc. was a Defendant in FTC v. Chemence, Inc., which is the court case listed 

near the top of this page. 

3. On [______ ___, 201_], Chemence, Inc. received a copy of the Stipulated Order for 

Permanent Injunction and Monetary Judgment, which was signed by the Honorable Patricia A. 

Gaughan and entered by the Court on [_______ ___, 201_]. The copy of the Order attached to 

this Acknowledgment is a true and correct copy of the Order it received. 

I declare under penalty of perjury under the laws of the United States of America that the 

foregoing is true and correct. Executed on [________ __, 201_]. 

[NAME] 

[Officer] of Chemence, Inc. 

State of ____________________, City of ____________________ 

Subscribed and sworn to before me 

this _____ day of _________, 201__. 

_____________________________ 

Notary Public 

My commission expires: 

_____________________________ 

Exhibit B 

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UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF OHIO 

FEDERAL TRADE COMMISSION 

 Plaintiff, 

v. 

CHEMENCE, INC., an Ohio corporation, 

 Defendant. 

Case No. 1:16-cv-228-PAG 

ACKNOWLEDGMENT BY 

DECLARATION OF 

RECEIPT OF ORDER BY 

NON PARTY 

I, ___________________________________, received a copy of the Stipulated Order for 

Permanent Injunction and Monetary Judgment, in FTC v. Chemence, Inc., on ________ ___, 

20___. 

I was not a Defendant in that court case. My title or relationship with Defendant 

Chemence, Inc. is _____________________________________. 

I declare under penalty of perjury under the laws of the United States of America that the 

foregoing is true and correct. 

Executed on _____ __, 20__. 

Signed: 

Exhibit B 

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