[Federal Register Volume 87, Number 97 (Thursday, May 19, 2022)]
[Notices]
[Pages 30495-30497]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10748]


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FEDERAL TRADE COMMISSION

[File No. 222 3023]


Lions Not Sheep; 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 draft 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 June 21, 2022.

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 ``Lions Not 
Sheep; File No. 222 3023'' 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, mail your 
comment to the following address: Federal Trade Commission, Office of 
the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex D), 
Washington, DC 20580, or deliver your comment to the following address: 
Federal Trade Commission, Office of the Secretary, Constitution Center, 
400 7th Street SW, 5th Floor, Suite 5610 (Annex D), Washington, DC 
20024.

FOR FURTHER INFORMATION CONTACT: Julia Solomon Ensor (202-326-2377), 
Bureau of Consumer Protection, Federal Trade Commission, 600 
Pennsylvania Avenue 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 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 thirty (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.

[[Page 30496]]

    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before June 21, 2022. 
Write ``Lions Not Sheep; File No. 222 3023'' 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 ``Lions Not 
Sheep; File No. 222 3023'' 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 D), 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 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 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 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 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 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 
that it receives on or before June 21, 2022. 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 Lions Not Sheep Apparel, LLC; Lions Not Sheep Products, LLC; 
Lions Not Sheep Ventures, LLC; Lions Not Sheep LLC; and Sean Whalen 
(``Respondents'').
    The proposed consent order has been placed on the public record for 
thirty (30) days for receipt of comments by interested persons. 
Comments received during this period will become part of the public 
record. After thirty (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 hats, accessories, 
and apparel as ``Made in USA.'' According to the FTC's complaint, 
Respondents represented that hats and non-apparel accessories were all 
or virtually all made in the United States. However, the complaint 
alleges that, in numerous instances, those hats and non-apparel 
accessories are wholly imported or contain significant imported 
content. Based on the foregoing, the complaint alleges Respondents 
engaged in deceptive acts or practices in violation of Section 5(a) of 
the FTC Act.
    The complaint further alleges Respondents violated the Textile 
Fiber Products Identification Act by (1) advertising articles of 
wearing apparel as of U.S. origin despite the fact they are wholly 
imported or incorporate significant imported materials, and (2) 
removing tags containing information required pursuant to the Textile 
Fiber Products Identification Act and replacing those tags with false 
country-of-origin designations.
    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 Enforcement Policy Statement on U.S.-Origin Claims, 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 about 
a product or service, including any representation regarding country of 
origin, unless the representation is not misleading and Respondents 
have a reasonable basis substantiating it.
    Part III requires Respondents to make certain disclosures about the 
country of origin of any product subject to the Textile Fiber Products 
Identification Act.
    Parts IV through VI are monetary provisions. Part IV imposes a 
judgment of $211,335. Part V includes additional monetary provisions 
relating to collections. Part VI requires Respondents to provide 
sufficient customer information to enable the Commission to administer 
consumer redress, if appropriate.
    Part VII 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

[[Page 30497]]

submit reports regarding their notification program.
    Parts VIII through XI are reporting and compliance provisions. Part 
VIII 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 
IX 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 X requires Respondents to maintain certain records, including 
records necessary to demonstrate compliance with the order. Part XI 
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 XII 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 proposed order or to modify its terms in any way.

    By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2022-10748 Filed 5-18-22; 8:45 am]
BILLING CODE 6750-01-P