Violations of Section 5

30. The acts and practices of Respondents 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 day of »20_, has
issued this Complaint against Respondents.

By the Commission.
[April J. Tabor]
Secretary

SEAL:


icing 2013

Exhibit E


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: 1,042 posts. 33.1K followers 573 following

CYCRA

CYCRA Inc.
Setting the highest standards of offroad protections and plastics since 1996,
Proudly made in the USA us

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Protections Events Plastics Supercross Motocross Offroad

Exhibit B


PROFSSONAL RACING LASTS

DESIGN. INNOVATION. PERFORMANCE

PROFESIONAL FACTORY "we WonLDs Mos TRUSTED
RAGINGPUSTES MANDCLARDS

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CLEARANCE SALE

Exhibit A


Exhibit D


2323007

UNITED STATES OF AMERICA
BEFORE THE FEDERAL TRADE COMMISSION

COMMISSIONERS: Lina M. Khan, Chair
Rebecca Kelly Slaughter
Christine S. Wilson
Alvaro M. Bedoya

In the Matter of
CYCRA INC.,, a corporation, and DOCKET NO.
STEVEN CHADWICK JAMES, a/k/a CHAD

JAMES, individually and as an
officer of CYCRA INC.

COMPLAINT

The Federal Trade Commission, having reason to believe that Cycra Inc., a corporation,
and Steven Chadwick James, individually and as an officer of Cycra Inc. (collectively,
“Respondents”), have violated the provisions of the Federal Trade Commission Act and the
Made in USA Labeling Rule, and it appearing to the Commission that this proceeding is in the
public interest, alleges:

1. Respondent Cyecra Inc. (“Cycra” or “Corporate Respondent”) is a North Carolina
corporation with its principal place of business as 941 Old Hargrave Road, Lexington, NC
27295.

2. Respondent Steven Chadwick James, also known as Chad James, (“James”) is an officer
of Cycra. Individually or in concert with others, he controlled or had the authority to control, or
participated in, the acts and practices of Cycra, including the acts and practices alleged in this
Complaint. His principal office or place of business is the same as that of Cycra.

3. Respondents have advertised, promoted, labeled, offered for sale, sold, and distributed
products to consumers, including motocross, motorcycle, and all-terrain vehicle (“ATV”) parts.

4. The acts and practices of Respondents alleged in this Complaint have been in or affecting
commerce, as “commerce” is defined in Section 4 of the Federal Trade Commission Act.


Exhibit F


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shop

@cycrausa - Product/service
‘About Photos More *
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24258 people foiow tis
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@ 15 High Tech Boulevard Thomasville, NC 27360

Additional contact info

© berpz/wwn.cycra.com
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More info

© About

Cycrais best known for cutting-edge race bodywork and Patented Probend
handguards.

#1 Factory Team Trusted Plastic

Made in the USA ©

© Additional information

Glen and Ken Laivns, two brothers with a passion to build great motorcycles,
started a design

studio in Columbus, Ohio more than 26 years ago. It was their dream and
obsession to build the

coolest motorcycles on the planet. Back them it didn't matter if it was a mini
bike, scooter, o

custom V-twin as long asit had wheels. Since then a lot has changed, The
‘wo brothers now own

57,000 sqft. manufacturing plant that turned their dreams into reality. In
their hears, it was the

only way they could control quality and perform the level of manufacturing
needed to produce

the best motorcycle accessories in the world

Cyera Racing develops, and builds i's products all under the same roof in
Thomasville, NC. From.

the CNC machine shop, state ofthe art paint faclty, plastic thermoforming,
and injection

molding. Cycra's dynamic design, production, and sales departments are
‘eager to help you get

the most out of your riding experience with the highest quality products and
service available

Te fact that Cycra joins all ofthese capabilities under one roof, helps control
and offer greater

precision inthe fabrication of every Cycra product

We love to ride, race, design and build motorcycles just about 24 hours a day.
Itis an honor for us to be part of some of the greatest off-road motorcycle
race teams around the world. See less

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have represented, directly or indirectly, expressly or by implication, that their products are all or
virtually all made in the United States.

21. In fact, in numerous instances in which Respondents have made the representations set
forth in Paragraph 20, Respondents’ products were not all or virtually all made in the United
States. Indeed, in numerous instances they were wholly imported or incorporated significant
imported components.

22. Therefore, Respondents’ representations as set forth in Paragraph 20 are false or
misleading, or were not substantiated at the time the representations were made.

Violations of the Made in USA Labeling Rule

23. Effective August 13, 2021, the Made in USA Labeling Rule, 16 C.F.R. Part 323 (“MUSA
Labeling Rule”), prohibits marketers from labeling products as “Made in USA” unless: (1) “the
final assembly or processing of the product occurs in the United States”; (2) “all significant
processing that goes into the product occurs in the United States”; and (3) “all or virtually all
ingredients or components of the product are made and sourced in the United States.” 16 C.F.R.
§ 323.2.

24. | The MUSA Labeling Rule also provides that to the extent any mail order catalog or mail
order promotional material includes a seal, mark, tag, or stamp labeling a product “Made in
USA,” such label must comply with the requirements of 16 C.F.R. § 323.2. 16 C.F.R. § 323.3.

25. For purposes of the MUSA Labeling Rule, “Made in USA” is defined as “any unqualified
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,’ ‘produced,’ ‘created,’ or ‘crafted’ in the United States or in
America, or any other unqualified U.S.-origin claim.” 16 C.F.R. § 323.1.

26. A violation of the MUSA Labeling Rule constitutes an unfair or deceptive act or practice
in violation of Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a). 15 U.S.C.
§ 57a(d)(3) and 16 C.F.R. § 323.4.

Count II
MUSA Labeling Rule Violations

27. In numerous instances since August 13, 2021, Respondents labeled motocross,
motorcycle, and ATV products as Made in the USA.

28. In fact, in numerous instances, these products were not Made in the USA. Such products
were not all or virtually all made in the United States because they were wholly imported or
contained significant imported components.

29. Therefore, Respondents’ acts or practices as set forth in Paragraph 27 violate the MUSA
Labeling Rule.


See Exhibits D-F (product labels and packaging).

10. In fact, many of the products Respondents have advertised, promoted, labeled, offered for
sale, sold, or distributed, including products advertised or sold with the MUSA Label, are not all
or virtually all made in the United States.

11. Between at least March 2019 and August 2022, Cycra imported at least 30 shipments of
parts or accessories from Asia and Europe.

12. In some instances, Cycra imported significant parts or materials that it incorporated into
products in the United States.

13. In other instances, Cycra imported finished products already packaged for sale with
MUSA Labels.

14. In at least two instances, Cycra imported shipments of finished products from Taiwan
already in packaging or ready to be packaged with MUSA Labels after receiving notice from
U.S. Customs and Border Protection (“CBP”) that such origin labels were false.

15. Accordingly, Cycra’s express or implied representations that its products are all or
virtually all made in the United States are false or unsubstantiated.

James’s Knowledge

16. Atall times relevant to this Complaint, Respondent James has served as Cycra’s Chief
Operating Officer and held day-to-day management responsibilities for the Corporate
Respondent.

17. Respondent James’s responsibilities have included creating, developing, approving,
implementing, overseeing, or ensuring compliance with Cycra’s policies regarding making
express or implied representations that products are made in the United States.

18. At all times relevant to this Complaint, James has had direct knowledge of Cycra’s
overseas purchases and importation practices, as well as the advertising, labeling, offering for
sale, sale, or distribution of partially or wholly imported products.

19. James has served as Cycra’s primary point of contact with CBP, and, in numerous
instances, corresponded with CBP agents regarding appropriate origin labeling for Cycra
products and the incidents described in Paragraph 14.

Count I
False or Misleading Made in USA Advertising Claims

20. In numerous instances since March 2019, in connection with the advertising, promotion,
offering for sale, sale, or distribution of motocross, motorcycle, and ATV products, Respondents


Respondents’ Business Practices

5. Cycra has advertised, promoted, labeled, offered for sale, sold, and distributed motocross,
motorcycle, and ATV products since 2019.

6. From 2019 until at least May 31, 2022, Respondents represented, expressly or by
implication, that their motocross, motorcycle, and ATV products are all or virtually all made in
the United States.

7. For example, Respondents’ cycra.com website featured a banner visible across its
product pages stating products are “Proudly designed, developed and manufactured in
Lexington, North Carolina.” See Exhibit A (cycra.com).

8. Cycra’s social media accounts also claimed Respondents’ products were all or virtually
all made in the United States, including by stating Cycra products were “Proudly made in the
USA” or “Made in the USA.” See Exhibits B-C (Respondents’ Instagram and Facebook pages).

9. Respondents labeled more than 150 products with the words “Made in the USA” (the
“MUSA Label”) and, in numerous instances, included an image of the U.S. flag on packaging for
these products.