[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]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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