The settlement resolves charges that the defendants violated Section 5 of the FTC Act, the Made in USA Labeling Rule, and the Textile Fiber Products Identification Act by misrepresenting the origin of flagpole kits, flags, related parts, and fire pits.
The Complaint alleged that the defendants failed to provide mandatory country-of-origin disclosures in advertising and labeling for textile fiber products, including flags and flagpole accessories.
Under the Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief entered in the Southern District of Florida, the defendants are permanently enjoined from representing products as Made in the United States unless specific criteria are met.
Those criteria require that final assembly and significant processing occur in the U.S., with virtually all components sourced domestically, or that a clear and conspicuous qualification accurately discloses foreign content.
The court entered a joint and several monetary judgment of $2 million against the corporate and individual defendants.
Defendants must immediately pay $167,743.15 held in escrow by counsel. The remainder of the judgment is suspended based on sworn financial statements submitted by the defendants.
The suspension may be lifted if the court finds that any defendant failed to disclose material assets or made material misstatements in their financial representations.
The order also requires the defendants to identify and notify all consumers who purchased flagpole kits, flags, or related accessories between December 2024 and February 2026.
Defendants must email notices to these affected customers within 30 days of the order's entry and submit compliance reports under penalty of perjury.
The defendants waived their right to appeal and agreed to bear their own costs and attorney fees.