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FTC going to the mat over mattresses

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FTC going to the mat over mattresses

The Federal Trade Commission is going after a Palo Alto, California-based mattress company that sold its products as having been “Designed and Assembled in the USA” when the items actually came from China, regulators announced Monday.

The company’s products were sold under the names “Nectar Sleep” and “DreamCloud.” The FTC alleges the products they sold weren’t so dreamy and sweet for consumers: premade mattresses from China.

To settle its case, Nectar Brand has agreed that it won’t represent — expressly or by implication — that a product is made in the United States unless the final assembly or processing of the product occurs in the U.S., all significant processing that goes into the product occurs in the U.S., and all or virtually all ingredients or components are made and sourced here.

The FTC maintains that “for a claim that a product is assembled in the United States, the product must be last substantially transformed in the United States, the product’s principal assembly must take place in the U.S., and United States assembly operations must be substantial. The order also prohibits any claim about the country of origin of any product unless the representation is true and at the time it is made, the company has a reasonable basis for the representation.”

The FTC published this tip for businesses with similar claims in its announcement over the ordeal: “Tell the truth.”

 

 

 

 

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