[Federal Register Volume 88, Number 77 (Friday, April 21, 2023)]
[Notices]
[Pages 24617-24618]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-08471]


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FEDERAL TRADE COMMISSION

[File No. 232 3007]


Cycra Inc.; 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 May 22, 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 ``Cycra Inc.; 
File No. 232 3007'' 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 P), 
Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Julia Solomon Ensor (202-326-2377), 
Attorney, Division of Enforcement, 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 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 May 22, 2023. 
Write ``Cycra Inc.; File No. 232 3007'' 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 ``Cycra 
Inc.; File No. 232 3007'' 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 P), 
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 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 
it receives on or before May 22, 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 
Cycra Inc. and

[[Page 24618]]

Steven Chadwick James (``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 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 
motorcycle, motocross, and all-terrain vehicle products as ``Made in 
USA.'' According to the FTC's complaint, Respondents labeled and 
advertised their products as made in the United States even though, in 
numerous instances, those products were wholly imported or contained 
significant imported content. Based on the foregoing, the complaint 
alleges Respondents violated Section 5 of the Federal Trade Commission 
Act, 15 U.S.C. 45(a), and section 323.2 of the Made in USA Labeling 
Rule, 16 CFR 323.2.
    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.
    Parts III through V are monetary provisions. Part IV imposes a 
judgment of $872,577 and partially 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 is immediately due. 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.
    Part VI 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 VII through VIII are reporting and compliance provisions. 
Part VII 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 
VIII 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 IX requires Respondents to maintain certain records, including 
records necessary to demonstrate compliance with the order. Part X 
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 XI 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. 2023-08471 Filed 4-20-23; 8:45 am]
BILLING CODE 6750-01-P