Gennex Media LLC; Analysis of Proposed Consent Order To Aid Public Comment, 13385-13386 [2021-04650]

Agencies

• FEDERAL TRADE COMMISSION

[Federal Register Volume 86, Number 43 (Monday, March 8, 2021)]
[Notices]
[Pages 13385-13386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04650]


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FEDERAL TRADE COMMISSION

[File No. 202 3122]


Gennex Media LLC; 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 April 5, 2021.

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 ``Gennex Media 
LLC; File No. 202 3122'' 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.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before April 5, 2021. 
Write ``Gennex Media LLC; File No. 202 3122'' 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.
    Due to the COVID-19 public health emergency and the agency's 
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 ``Gennex Media 
LLC; File No. 202 3122'' on your comment and on the envelope, and mail 
it 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. If possible, submit your paper comment to the Commission by 
courier or overnight service.
    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 in particular 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 https://www.ftc.gov to read this Notice and 
the news release describing the proposed settlement. The FTC Act and 
other laws that 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 April 5, 2021. 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.

[[Page 13386]]

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 Gennex Media LLC and Akil Kurji (``Respondents'').
    The proposed consent order has been placed on the public record for 
thirty days for receipt of comments from interested persons. Comments 
received during this period will become part of the public record. 
After thirty days, the Commission will again review the agreement and 
the comments received, and will decide whether it should withdraw from 
the agreement or make final the agreement's proposed order.
    This matter involves Respondents' use of ``Made in USA'' claims to 
advertise and sell customizable promotional products to consumers. 
According to the FTC's complaint, Respondents represented that the 
customizable promotional products they offer are all or virtually all 
made in the United States. In fact, in numerous instances, Respondents' 
customizable promotional products are wholly imported from China. 
Indeed, in some instances the products ship directly to consumers from 
China without passing through Respondents' U.S. facility. According to 
the complaint, Kurji, Gennex's sole officer and shareholder, formulated 
or approved marketing materials with U.S.-origin claims despite knowing 
numerous products advertised are imported. Based on the foregoing, the 
complaint alleges that Respondents engaged in deceptive acts or 
practices in violation of Section 5(a) of the FTC Act.
    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 Enforcement Policy Statement on U.S. Origin 
Claims, Part I prohibits Respondents from making U.S.-origin claims for 
their products unless either: (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 country-of-origin claim about a product or service unless the claim 
is true, not misleading, and Respondents have a reasonable basis 
substantiating the representation.
    Parts III through V are monetary provisions. Part III imposes a 
judgment of $146,249.24. 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.
    Parts VI through IX are reporting and compliance provisions. Part 
VI 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 VII 
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 VIII 
requires Respondents to maintain certain records, including records 
necessary to demonstrate compliance with the order. Part IX 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 X 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.
April J. Tabor,
Secretary.
[FR Doc. 2021-04650 Filed 3-5-21; 8:45 am]
BILLING CODE 6750-01-P