UNITED STATES DISTRICT COURT 

IN THE NORTHERN DISTRICT OF omo 

WESTERN DIVISION 

UNITED STATES OF AMERICA, 

Case No. ____ 3:22cv1389_ 

Plaintiff, STIPULATED ORDER FOR 

V. PERMANENT INJUNCTION, 

MONETARY RELIEF 

AX JUDGMENT, AND CIVIL IS LED GROUP, LLC, a limited liability 

company; PENALTY JUDGMENT 

ALG-HEAL TH LLC, a limited liability company; 

and 

ADAM J. HARMON, individually and as an 

officer of AXIS LED GROUP, LLC and 

ALG-HEAL TH LLC, 

Defendants. 

Plaintiff, the United States of America, acting upon notification and authorization to the 

Attorney General by the Federal Trade Commission ("Commission" or "FTC"), filed its 

Complaint for Pe1manent Injunction, Monetaiy Relief, Civil Penalties, and Other Relief 

("Complaint"), for a pe1manent injunction, monetaiy relief, civil penalties, and other relief in this 

matter, pmsuant to Sections 13(b), 16(a)(l ), and 19 of the Federal Trade Commission Act ("FTC 

Act"), 15 U.S.C. §§ 53(b), 56(a)(l ), and 57b; the Made in USA Labeling Rule ("MUSA 

Labeling Rule"), 16 C.F.R. Part 323; and the COVID-19 Consumer Protection Act of the 2021 

Consolidated Appropriations Act, Pub. L. No. 116-260, 134 Stat. 1182, Title XN, Section 1401 

("COVID-19 Act"). Defendants have waived service of the summons and the Complaint. 

Plaintiff and Defendants stipulate to the ent1y of this Stipulated Order for Pe1manent Injunction, 

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Monetary Relief Judgment, and Civil Penalty Judgment (“Order”) to resolve all matters in 

dispute in this action between them. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 

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

violation of Section 5 of the FTC Act, 15 U.S.C. § 45, and the MUSA Labeling Rule, 16 C.F.R. 

Part 323, in connection with, among other things, the labeling and advertising of certain lightemitting diode and personal protective equipment (“PPE”) products containing significant 

imported content as “Made in USA.” 

3. The Complaint also charges that, during the 2019 novel coronavirus public health 

emergency, in connection with the labeling and advertising of certain PPE products, Defendants 

participated in deceptive acts or practices associated with the prevention or mitigation of 

COVID-19 in violation of Section 5 of the FTC Act, 15 U.S.C. § 45. The COVID-19 Act, Pub. 

L. No. 116-260, 134 Stat. 1182, Title XIV, § 1401(b)(1) authorizes this Court to award monetary 

civil penalties of up to $46,517 for each such violation. 

4. Defendants neither admit nor deny any of the allegations in the Complaint, except as 

specifically stated in this Order. Only for purposes of this action, Defendants admit the facts 

necessary to establish jurisdiction. 

5. Defendants waive any claim that they 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 

agree to bear their own costs and attorney fees. 

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6. Defendants and Plaintiff waive 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 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. In any communication using an interactive electronic medium, such as the 

Internet or software, the disclosure must be unavoidable. 

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5. On a product label, the disclosure must be presented on the principal display 

panel. 

6. 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. 

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. “Defendants” means the Individual Defendant and the Corporate Defendants, 

individually, collectively, or in any combination. 

1. “Corporate Defendants” means Axis LED Group, LLC and ALG-Health LLC, 

and their successors and assigns. 

2. “Individual Defendant” means Adam J. Harmon. 

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

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

representation that such good or service is “made,” “manufactured,” “built,” “produced,” or 

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

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ORDER 

I. 

PROHIBITION AGAINST MISREPRESENTATIONS 

REGARDING U.S.-ORIGIN CLAIMS 

IT IS ORDERED that Defendants, Defendants’ 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 promoting or 

offering for sale any good or service, are permanently restrained and enjoined from representing 

or assisting others in representing, expressly or by implication, that a good 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. 

II. 

PROHIBITION AGAINST MISLEADING OR 

UNSUBSTANTIATED REPRESENTATIONS 

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, 

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

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A. 

B. 

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

promoting or offering for sale any good or service, are permanently restrained and enjoined from 

making any representation, expressly or by implication, including: (1) any representation 

regarding the country of origin of any good or service; or (2) any representation regarding: 

(a) the treatment, cure, prevention, mitigation, or diagnosis of COVID-19, or (b) any government 

benefit related to COVID-19, unless the representation is non-misleading, including that, at the 

time such representation is made, Defendants possess and rely upon a reasonable basis for the 

representation. 

III. 

MONETARY JUDGMENT FOR RELIEF AND SUSPENSION 

IT IS FURTHER ORDERED that: 

Judgment in the amount of Two Million Seven Hundred Sixty-Nine Thousand Eight 

Hundred Ninety-Eight Dollars ($2,769,898) is entered in favor of Plaintiff against Individual 

Defendant and Corporate Defendants, jointly and severally, as monetary relief. The judgment is 

suspended subject to the Subsections below. 

The Commission’s and Plaintiff’s agreement to the suspension of the judgment is 

expressly premised upon the truthfulness, accuracy, and completeness of Defendants’ sworn 

financial statements and related documents (collectively, “Financial Attestations”) submitted to 

the Commission, namely: 

1. The Financial Statement of Individual Defendant Adam J. Harmon signed on 

April 21, 2022, submitted to Commission Counsel Julia Solomon Ensor on May 11, 

2022, with corrected Line 25, including the attachments submitted to Commission 

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C. 

D. 

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Counsel on May 4, 2022; 

2. The Financial Statement of Corporate Defendant Axis LED Group, LLC signed 

by Adam J. Harmon on April 21, 2022, submitted to Commission Counsel Julia Solomon 

Ensor on May 6, 2022, including the attachments submitted to Commission Counsel on 

May 4, 2022; 

3. The Financial Statement of Corporate Defendant ALG-Health LLC signed by 

Adam J. Harmon on April 21, 2022, submitted to Commission Counsel Julia Solomon 

Ensor on May 6, 2022, including the attachments submitted to Commission Counsel on 

May 4, 2022; and 

4. The additional documentation submitted by Defendants’ counsel Jonathan Slotter 

to Commission Counsel Julia Solomon Ensor dated April 5, 2022, and May 4, 2022, 

including bank statements and checks. 

The suspension of the judgment will be lifted as to any Defendant if, upon motion by the 

Commission or Plaintiff, the Court finds that Defendant failed to disclose any material asset, 

materially misstated the value of any asset, or made any other material misstatement or omission 

in the Financial Attestations identified above. 

If the suspension of the judgment is lifted, the judgment becomes immediately due as to 

that Defendant in the amount specified in Subsection A above (which the parties stipulate only 

for purposes of this Section represents the consumer injury alleged in the Complaint), less any 

payment previously made pursuant to this Section, plus interest computed from the date of entry 

of this Order. 

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IV. 

MONETARY JUDGMENT FOR CIVIL PENALTY 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of One Hundred Fifty-Seven Thousand Six Hundred EightyThree Dollars and Thirty-Seven Cents ($157,683.37) is entered in favor of Plaintiff against the 

Individual Defendant and the Corporate Defendants, jointly and severally, as a civil penalty. 

B. Defendants are ordered to pay to Plaintiff, by making payment to the Treasurer of the 

United States, One Hundred Fifty-Seven Thousand Six Hundred Eighty-Three Dollars and 

Thirty-Seven Cents ($157,683.37), which, as Defendants stipulate, their undersigned counsel 

holds in escrow for no purpose other than payment to Plaintiff. 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 Plaintiff. 

V. 

ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

A. Defendants relinquish 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. 

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

subsequent civil litigation by or on behalf of the Commission in a proceeding to enforce its rights 

to any payment or monetary judgment pursuant to this Order. 

C. Defendants agree that the civil penalty judgment represents a civil penalty owed to the 

government of the United States, is not compensation for actual pecuniary loss, and, therefore, as 

to the Individual Defendant, it is not subject to discharge under the Bankruptcy Code pursuant to 

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11 U.S.C. § 523(a)(7). 

D. Defendants acknowledge that their Taxpayer Identification Numbers (Social Security 

Number or Employer Identification Numbers), which Defendants 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. 

E. All money received by the Commission pursuant to this Order may be deposited into a 

fund administered by the Commission or its designee to be used for consumer relief, such as 

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 such redress is completed, the Commission may apply any 

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

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

money not used for relief is to be deposited to the U.S. Treasury as an additional civil penalty. 

Defendants have no right to challenge any actions the Commission or its representatives may 

take pursuant to this Subsection. 

VI. 

ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of 

this Order: 

A. Each 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, Individual Defendant, for any business that such 

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Defendant is the majority owner or controls directly or indirectly, and Corporate Defendants, 

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 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 a Defendant delivered a copy of this Order, that 

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

Order. 

VII. 

COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions to the 

Commission: 

A. One year after entry of this Order, each Defendant must submit a compliance report, 

sworn under penalty of perjury: 

1. Each Defendant must: (a) identify the primary physical, postal, and email 

address and telephone number, as designated points of contact, which representatives of 

the Commission and Plaintiff may use to communicate with Defendant; (b) identify all of 

that Defendant’s businesses by all of their names, telephone numbers, and physical, 

postal, email, and Internet addresses; (c) describe the activities of each business, 

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including the goods and services offered, the means of advertising, marketing, and sales, 

and the involvement of any other Defendant (which Individual Defendant must describe 

if he knows or should know due to his own involvement); (d) describe in detail whether 

and how that 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. 

2. Additionally, the Individual Defendant must: (a) identify all telephone numbers 

and all physical, postal, email and Internet addresses, including all residences; (b) 

identify all business activities, including any business for which such Defendant performs 

services whether as an employee or otherwise and any entity in which such Defendant 

has any ownership interest; and (c) describe in detail such Defendant’s involvement in 

each such business, including title, role, responsibilities, participation, authority, control, 

and any ownership. 

B. For 20 years after entry of this Order, each Defendant must submit a compliance 

notice, sworn under penalty of perjury, within 14 days of any change in the following: 

1. Each Defendant must report any change in: (a) any designated point of contact; 

or (b) the structure of any Corporate Defendant or 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. 

2. Additionally, the Individual Defendant must report any change in: (a) name, 

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including aliases or fictitious name, or residence address; or (b) title or role in any 

business activity, including any business for which such Defendant performs services 

whether as an employee or otherwise and any entity in which such Defendant has any 

ownership interest, and identify the name, physical address, and any Internet address of 

the business or entity. 

C. Each Defendant must submit to the Commission notice of the filing of any bankruptcy 

petition, insolvency proceeding, or similar proceeding by or against such 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, 

DC 20580. The subject line must begin: FTC v. Axis LED Group, LLC. 

VIII. 

RECORDKEEPING 

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

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

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Defendants, and Individual Defendant, for any business that such Defendant, individually or 

collectively with any other Defendants, is a majority owner or controls directly or indirectly, 

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. 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; and 

E. A copy of each unique advertisement, label, or other marketing material that includes any 

express or implied claim: (1) that a product is Made in the United States; (2) relating to the 

treatment, cure, prevention, mitigation, or diagnosis of COVID-19; or (3) relating to any 

government benefit related to COVID-19. 

IX. 

COMPLIANCE MONITORING 

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

compliance with this Order and 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 or 

Plaintiff, each Defendant must: submit additional compliance reports or other requested 

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information, which must be sworn under penalty of perjury; appear for depositions; and produce 

documents for inspection and copying. The Commission and Plaintiff are also authorized to 

obtain discovery, without further leave of court, using any of the procedures 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 Commission and Plaintiff are authorized to 

communicate directly with each Defendant. Defendants must permit representatives of the 

Commission or Plaintiff to interview any employee or other person affiliated with any Defendant 

who has agreed to such an interview. The person interviewed may have counsel present. 

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

its representatives as consumers, suppliers, or other individuals or entities, to Defendants or any 

individual or entity affiliated with Defendants, 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. 

D. Upon written request from a representative of the Commission or Plaintiff, any consumer 

reporting agency must furnish consumer reports concerning Individual Defendant, pursuant to 

Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. §1681b(a)(1). 

X. 

RETENTION OF JURISDICTION 

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

purposes of construction, modification, and enforcement of this Order. 

8th September SO ORDERED this day of , 2022. 

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SO STIPULATED AND AGREED: 

FOR PLAINTIFF: 

UNITED STATES OF AMERICA 

BRIAN M. BOYNTON 

Principal Deputy Attorney General 

Civil Division 

ARUN G. RAO 

Deputy Assistant Attorney General 

MICHELLE M. BAEPPLER 

First Assistant United States Attorney 

Northern District of Ohio 

s/Brendan F. Barker 

BRENDAN F. BARKER (IL: 6299039) 

Assistant United States Attorney 

United States Court House 

801 West Superior Avenue, Suite 400 

Cleveland, OH 44113 

(216) 622-3795 

(216) 522-2404 (facsimile) 

Brendan.Barker@usdoj.gov 

GUSTAV W. EYLER 

Director 

Consumer Protection Branch 

LISA K. HSIAO 

Assistant Director 

s/ Matthew A. Robinson 

MATTHEW A. ROBINSON 

ELLEN BOWDEN MCINTYRE 

Trial Attorneys Appearing Pursuant to 28 U.S.C. § 517 

Consumer Protection Branch 

U.S. Department of Justice 

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P.O. Box 386 

Washington, DC 20044 

matthew.a.robinson@usdoj.gov 

Phone: (202) 305-4342 

ellen.bowden.mcintyre@usdoj.gov 

Phone: (202) 451-7731 

FEDERAL TRADE COMMISSION 

s/ Julia Solomon Ensor 

JULIA SOLOMON ENSOR 

Attorney 

Federal Trade Commission 

600 Pennsylvania Ave., N.W. 

Mail Stop CC-9528 

Washington, D.C. 20580 

Tel.: 202-326-2377 

Fax: 202-326-3197 

jensor@ftc.gov 

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FOR DEFENDANTS: 

~~0,G&u Date: £I,2,/ ~-- STEPHEN CHELL 

Cochell Law Finn 

COUNSEL for Axis LED Group, LLC, ALG-Health LLC, and Adam J. Ha1mon 

It is so ordered. 

s/James G. Carr 

Sr. U.S. District Judge 

Date: 9/8/2022 

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