FTC Settles with Lions Not Sheep over Mislabeling Allegations

Lori Kalani, Bernard Nash
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  • The FTC has reached a settlement with Utah-based apparel company Lions Not Sheep, LLC and its owner to resolve allegations that the company mislabeled garments as “Made in the USA” when, in fact, they were manufactured in China. In so doing, the company is alleged to have violated the FTC Act, The Textile Fiber Products Identification Act, and the Textile Fiber Rule.
  • According to the complaint, the company allegedly imported garments such as t-shirts, jackets, and sweatshirts manufactured in China and labeled as such, removed the tags, and printed each garment with a misleading “Made in USA” logo, and also advertised extensively online and in social media that the products were made in the U.S., in violation of country-of-origin labeling rules.
  • Under the terms of the proposed consent order, among other things, the company will pay a monetary penalty of $211,335 and is enjoined from falsely labeling products as “Made in the USA.”
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