Chemence Inc., a maker of strong, fast-acting glue, has agreed to pay $220,000 and discontinue its use of misleading “Made in USA” labels to settle a suit filed by the U.S. Federal Trade Commission (FTC) in a Ohio federal court. Under the terms of the settlement, the FTC will be keeping a more watchful eye on the Georgia-based manufacturer to ensure the company uses its “Made in USA” or “Proudly Made in USA” labels only in cases where the company can meet the relevant standards of the FTC Act. The FTC said:
The settlement prohibits the company from making unqualified ‘Made in USA’ claims for any product unless it can show that the product’s final assembly or processing – and all significant processing – take place in the United States, and that all or virtually all ingredients or components of the product are made and sourced in the United States.
Chemence will be allowed to make qualified “Made in USA” claims for its adhesives as long as the company is forthcoming with its customers about how much of the product contains foreign components or processing. According to the suit, filed in February, Chemence had been labeling its glues – including powerful, fast-acting adhesives known as cyanoacrylates – as being “Proudly Made in the USA” or just “Made in the USA.” However, the FTC says about 55 percent of the chemical components used to make those glues come from abroad. The FTC said:
Therefore, defendant’s claims that its cyanoacrylate glues are made in the USA deceive consumers because defendant’s products are actually made in the USA with domestic and imported materials.
It’s alleged in the complaint that by mislabeling its products, Chemence has violated the FTC Act’s prohibitions against false representations and distributing misleading promotional materials for third-party retailers. A subsidiary of U.K.-based Chemence Ltd., the company produces a number of glues intended for various household projects, including Kwik-Fix, Hammer-Tite and Greenhouse, an “eco-friendly” glue made without solvents and sold in recycled packaging, according to its website. The case is Federal Trade Commission v. Chemence Inc. in the U.S. District Court for the Northern District of Ohio.
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