[Federal Register Volume 88, Number 235 (Friday, December 8, 2023)]
[Notices]
[Pages 85619-85621]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26945]


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FEDERAL TRADE COMMISSION

[File No. 232 3035]


ExotoUSA LLC--Old Southern Brass; Analysis of Proposed Consent 
Order To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement; request for comment.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of Federal law prohibiting unfair or deceptive acts or 
practices. The attached Analysis of Proposed Consent Order to Aid 
Public Comment describes both the allegations in the complaint and the 
terms of the consent order--embodied in the consent agreement--that 
would settle these allegations.

DATES: Comments must be received on or before January 8, 2024.

ADDRESSES: Interested parties may file comments online or on paper by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Please write ``ExotoUSA LLC--
Old Southern Brass; File No. 232 3035'' on your comment and file your 
comment online at https://www.regulations.gov by following the 
instructions on the web-based form. If you prefer to file your comment 
on paper, please mail your comment to the following address: Federal 
Trade Commission, Office of the Secretary,

[[Page 85620]]

600 Pennsylvania Avenue NW, Suite CC-5610 (Annex V), Washington, DC 
20580.

FOR FURTHER INFORMATION CONTACT: Thomas Harris (202-326-3620), 
Attorney, Division of Marketing Practices, Bureau of Consumer 
Protection, Federal Trade Commission, 600 Pennsylvania Ave. NW, 
Washington, DC 20580.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule section 2.34, 16 
CFR 2.34, notice is hereby given that the above-captioned consent 
agreement containing a consent order to cease and desist, having been 
filed with and accepted, subject to final approval, by the Commission, 
has been placed on the public record for a period of 30 days. The 
following Analysis to Aid Public Comment describes the terms of the 
consent agreement and the allegations in the complaint. An electronic 
copy of the full text of the consent agreement package can be obtained 
at https://www.ftc.gov/news-events/commission-actions.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before January 8, 2024. 
Write ``ExotoUSA LLC--Old Southern Brass File No. 232 3035'' on your 
comment. Your comment--including your name and your State--will be 
placed on the public record of this proceeding, including, to the 
extent practicable, on the https://www.regulations.gov website.
    Because of heightened security screening, postal mail addressed to 
the Commission will be subject to delay. We strongly encourage you to 
submit your comments online through the https://www.regulations.gov 
website. If you prefer to file your comment on paper, write ``ExotoUSA 
LLC--Old Southern Brass File No. 232 3035'' on your comment and on the 
envelope, and mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite 
CC-5610 (Annex V), Washington, DC 20580.
    Because your comment will be placed on the publicly accessible 
website at https://www.regulations.gov, you are solely responsible for 
making sure your comment does not include any sensitive or confidential 
information. In particular, your comment should not include sensitive 
personal information, such as your or anyone else's Social Security 
number; date of birth; driver's license number or other State 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. You are also 
solely responsible for making sure your comment does not include 
sensitive health information, such as medical records or other 
individually identifiable health information. In addition, your comment 
should not include any ``trade secret or any commercial or financial 
information which . . . is privileged or confidential''--as provided by 
section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule section 
4.10(a)(2), 16 CFR 4.10(a)(2)--including competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    Comments containing material for which confidential treatment is 
requested must be filed in paper form, must be clearly labeled 
``Confidential,'' and must comply with FTC Rule section 4.9(c). In 
particular, the written request for confidential treatment that 
accompanies the comment must include the factual and legal basis for 
the request and must identify the specific portions of the comment to 
be withheld from the public record. See FTC Rule section 4.9(c). Your 
comment will be kept confidential only if the General Counsel grants 
your request in accordance with the law and the public interest. Once 
your comment has been posted on the https://www.regulations.gov 
website--as legally required by FTC Rule section 4.9(b)--we cannot 
redact or remove your comment from that website, unless you submit a 
confidentiality request that meets the requirements for such treatment 
under FTC Rule section 4.9(c), and the General Counsel grants that 
request.
    Visit the FTC website at http://www.ftc.gov to read this document 
and the news release describing the proposed settlement. The FTC Act 
and other laws the Commission administers permit the collection of 
public comments to consider and use in this proceeding, as appropriate. 
The Commission will consider all timely and responsive public comments 
it receives on or before January 8, 2024. For information on the 
Commission's privacy policy, including routine uses permitted by the 
Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission (``FTC'' or ``Commission'') has 
accepted, subject to final approval, an agreement containing a consent 
order from ExotoUSA LLC, d/b/a Old Southern Brass, and Austin Oliver 
(``Respondents'').
    The proposed consent order has been placed on the public record for 
30 days for receipt of comments by interested persons. Comments 
received during this period will become part of the public record. 
After 30 days, the Commission will again review the agreement and the 
comments received and decide whether it should withdraw from the 
agreement or make final the agreement's proposed order. This matter 
involves Respondents' advertising of glassware, mugs, pens, and other 
novelty items as made in the United States and claims of association 
with the U.S. military.
    According to the FTC's complaint, Respondents (1) deceptively 
advertised certain products as made in the United States even though, 
in numerous instances, they were wholly imported, and (2) falsely 
claimed ExotoUSA LLC is veteran-operated, donates 10% of sales to 
military service charities, and incorporates bullets or bullet casings 
fired by the U.S. military into its products. Based on the foregoing, 
the complaint alleges Respondents violated section 5 of the Federal 
Trade Commission Act, 15 U.S.C. 45(a).
    The proposed consent order contains provisions designed to prevent 
Respondents from engaging in similar acts and practices in the future. 
Consistent with the FTC's Made in USA Labeling Rule, 16 CFR part 323, 
and its Enforcement Policy Statement on U.S.-Origin Claims, 62 FR 
63756, 63768 (Dec. 2, 1997), Part I prohibits Respondents from making 
U.S.-origin claims for their products 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; (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 or components, and/or processing; or (3) 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.
    Part II prohibits Respondents from making any representation, 
including any claim about the country of origin of a product or service 
or any claim Respondents have an association with the U.S. military, 
unless the

[[Page 85621]]

representation is not misleading and Respondents have a reasonable 
basis substantiating it.
    Parts III through V are monetary provisions. Part III imposes a 
judgment of $4,572,137.66 and partially suspends that judgment on the 
basis of the Respondents' sworn financial statements. If the Commission 
concludes any Respondent made a material misrepresentation or omission 
in that Respondent's sworn financial statement, the suspension as to 
that Respondent is lifted and the full judgment is immediately due. 
Part IV includes additional monetary provisions relating to 
collections. Part V requires Respondents to provide sufficient customer 
information to enable the Commission to administer consumer redress, if 
appropriate.
    Part VI is a notice provision requiring Respondents to identify and 
notify certain consumers of the FTC's action within 30 days after the 
issuance of the order, or within 30 days of the consumer's 
identification, if identified later. Respondents are also required to 
submit reports regarding their notification program.
    Parts VII through X are reporting and compliance provisions. Part 
VII requires Respondents to acknowledge receipt of the order, to 
provide a copy of the order to certain current and future principals, 
officers, directors, and employees, and to obtain an acknowledgement 
from each such person that they have received a copy of the order.
    Part VIII requires Respondents to file a compliance report within 
one year after the order becomes final and to notify the Commission 
within 14 days of certain changes that would affect compliance with the 
order.
    Part IX requires Respondents to maintain certain records, including 
records necessary to demonstrate compliance with the order. Part X 
requires Respondents to submit additional compliance reports when 
requested by the Commission and to permit the Commission or its 
representatives to interview Respondents' personnel. Finally, Part XI 
is a ``sunset'' provision, terminating the order after twenty (20) 
years, with certain exceptions.
    The purpose of this analysis is to aid public comment on the 
proposed order. It is not intended to constitute an official 
interpretation of the complaint or proposed order, or to modify in any 
way the proposed order's terms.

    By direction of the Commission.
Joel Christie,
Acting Secretary.
[FR Doc. 2023-26945 Filed 12-7-23; 8:45 am]
BILLING CODE 6750-01-P