[Federal Register Volume 87, Number 164 (Thursday, August 25, 2022)]
[Notices]
[Pages 52385-52386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18313]


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FEDERAL TRADE COMMISSION

[File No. 222 3096]


Electrowarmth Products, 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 September 26, 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 ``Electrowarmth 
Products, LLC; File No. 222 3096'' 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 D), Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Julia 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 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 September 26, 
2022. Write ``Electrowarmth Products, LLC; File No. 222 3096'' 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 ``Electrowarmth 
Products, LLC; File No. 222 3096'' 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 September 26, 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 Electrowarmth Products, LLC and Daniel W. Grindle 
(``Respondents'').
    The proposed consent order has been placed on the public record for 
30 days for receipt of comments from interested persons. Comments 
received during this period will become part of the public record. 
After 30 days, the Commission

[[Page 52386]]

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 textile fiber 
products as ``Made in USA.'' According to the FTC's complaint, 
Respondents labeled and advertised ``bunk warmer'' mattress pads for 
truck bunks as made in the United States. The complaint alleges, 
however, that in numerous instances those bunk warmer pads were wholly 
imported from China. Based on the foregoing, the complaint alleges 
Respondents violated sections 70a and 70b of the Textile Fiber Products 
Identification Act, 15 U.S.C. 70a and 70b, and sections 303.33 and 
303.34 of the Textile Fiber Rule, 16 CFR 303.33 and 303.34.
    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 of 
the proposed order 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 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 $815,809, and fully suspends that judgment based on the 
Respondents' sworn financial statements. If the Commission concludes 
any Respondent made a material misrepresentation or omission in that 
Respondent's sworn financial statement, the suspension as to that 
Respondent is lifted and the full judgment immediately due. 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 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.
Joel Christie,
Acting Secretary.
[FR Doc. 2022-18313 Filed 8-24-22; 8:45 am]
BILLING CODE 6750-01-P