Glue company settles with FTC over ‘Made in USA’ claimPosted On: Feb. 12, 2021 2:57 PM CST
The Federal Trade Commission said Friday it has approved a final consent order under which a super glue manufacturer will pay $1.2 million to settle charges it sold its product with misleading “Made in USA” labels.
The FTC said the $1.2 million settlement with Alpharetta, Georgia-based Chemence Inc. and its president, James Cooke, is the highest monetary judgment ever for a Made in USA Case.
The FTC said in its statement that the company supplied pre-labeled and pre-packaged glues with the decorative Made in USA claims to its trade customers for use in marketing the strong, fast-acting glues under retailer brand names.
Under terms of the final order, Chemence and Mr. Cooke are prohibited from making unqualified U.S.-origin claims for any product, unless they can show its final assembly processing, and all significant processing, takes place in the United States and that all, or virtually all, product ingredients or components are made and sourced in the U.S.
According to an earlier FTC statement, despite Chemence and Mr. Cooke’s representations, in numerous instances foreign materials accounted for more than 80 percent of the materials costs and more than 50 percent of the overall manufacturing costs for these products.
The FTC’s complaint said that the labels, some with an American flag, were on products such as Master Super Glue, JB WELD SuperWeld, Stick Fast Instant CA Adhesive, Pink Gel Nail Glue, SAATI Ultrafix CA – MV, and Kiss Maximum Speed Nail Glue.
The FTC has said also that the company and Mr. Cooke have violated a 2016 order over the same issue, which led to a $220,000 judgment.
The company did not respond to a request for comment.