Chaucer/Bates Accessories; Analysis of Proposed Consent Order To Aid Public Comment, 45425-45426 [2023-15053]

Agencies

• FEDERAL TRADE COMMISSION

[Federal Register Volume 88, Number 135 (Monday, July 17, 2023)]
[Notices]
[Pages 45425-45426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15053]


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FEDERAL TRADE COMMISSION

[File No. 222 3163]


Chaucer/Bates Accessories; 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 August 16, 2023.

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 ``Chaucer/Bates 
Accessories; File No. 222 3163'' 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, 600 Pennsylvania Avenue NW, Suite CC-5610 
(Annex C), Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Julia Ensor (202-326-2377), Attorney, 
Division of Enforcement, 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 Sec.  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 August 16, 2023. 
Write ``Chaucer/Bates Accessories; File No. 222 3163'' 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 ``Chaucer/
Bates Accessories; File No. 222 3163'' on your comment and on the 
envelope, and mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Ave. NW, Suite 
CC-5610 (Annex C), 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 Sec.  
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 Sec.  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 Sec.  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 Sec.  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 Sec.  4.9(c), and the General Counsel grants that 
request.
    Visit the FTC website at https://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 August 16, 2023. 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 (the ``Commission'') has accepted, 
subject to final approval, an agreement containing a consent order from 
Chaucer Accessories, Inc., Bates Accessories, Inc., Bates Retail Group, 
Inc., and Thomas P. Bates (``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' labeling and advertising of 
belts, shoes, and other products as ``Made in USA'' or ``Made in USA 
from Global Materials.'' According to the FTC's complaint, Respondents 
(1) advertised certain products as made in the United States even 
though, in numerous instances, they were wholly imported or 
incorporated significant imported components, and (2) labeled and 
advertised certain other products as ``Made in USA from Global 
Materials''

[[Page 45426]]

even though, in numerous instances, those products were wholly imported 
with de minimis finishing in the United States. The FTC's complaint 
also alleges that, by distributing promotional materials containing 
misrepresentations regarding the origin of their products, Respondents 
provided trade customers the means and instrumentalities for the 
commission of deceptive act or practices. 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, 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 
the country of origin of a product or service, unless the 
representation is not misleading and Respondents have a reasonable 
basis substantiating it. Part III prohibits Respondents from providing 
others with the means and instrumentalities to make the claims 
prohibited in Parts I or II.
    Parts IV through V are monetary provisions. Part IV imposes a 
judgment of $191,481. 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 
submit reports regarding their notification program.
    Parts VIII through IX 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 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. 2023-15053 Filed 7-14-23; 8:45 am]
BILLING CODE 6750-01-P