Legal Library: Cases and Proceedings

Resident Home LLC and owner Ran Reske paid $753,000 to settle FTC charges that they made false, misleading, or unsupported advertising claims that their imported DreamCloud mattresses were made from 100% USA-made materials. According to the complaint, although the company and Reske repeatedly claimed in promotional literature that their mattresses were “proudly made with 100 percent USA-made premium quality materials,” all DreamCloud mattresses were finished overseas, and in some cases were wholly imported or used significant imported materials.  On June 14, 2022, the Commission announced the final consent agreement in this matter.

On March 30, 2023, the FTC began sending payments totaling nearly $45,000 to consumers who purchased DreamCloud mattresses sold by Resident Home, LLC, the parent company of Nectar Sleep, which used misleading “Made in USA” claims to pitch its products to consumers. 

In the next few months, the FTC will be contacting an additional 12,300 consumers who bought DreamCloud mattresses and may be eligible for a payment. Consumers who believe that they may be eligible and want more information about the claims process can contact the administrator, JND Legal Administration, at 844-798-0740.

The Federal Trade Commission is taking action against motocross and ATV parts maker Cycra and its officer, Chad James, for falsely claiming that the company’s products were manufactured in the U.S. The FTC’s proposed order would stop Cycra and James from making deceptive claims about products being “Made in USA” and require them to pay a monetary judgment. In June 2023, the Commission announced the finalized order. In May 2024, the FTC sent $180,000 in refunds to consumers in this case.

The Federal Trade Commission sued apparel company Lions Not Sheep Products, LLC, and its owner Sean Whalen for falsely claiming that its imported apparel is Made in USA. According to the FTC’s complaint, the company added phony Made in USA labels to clothing and accessories imported from China and other countries. The FTC’s proposed order requires Lions Not Sheep and Whalen to stop making bogus Made in USA claims, come clean about foreign production, and pay a monetary judgment. On July 28, 2022, the Commission announced the final consent agreement in this matter.  In May 2023, the FTC announced it was returning $176,000 to defrauded consumers.

The Federal Trade Commission sued Electrowarmth Products, LLC and its owner, Daniel W. Grindle, alleging that they falsely claimed the heated fabric mattress pads they sell for truck bunks were made in the USA. The FTC charged Grindle and Electrowarmth with violating the Textile Act and the Federal Trade Commission Act. According to the complaint, Grindle and Electrowarmth violated these acts by labeling and advertising the origin of the textiles used in their products as the United States, when these textile fiber products were wholly imported from China. The proposed order prohibits Grindle and Electrowarmth from making any country-of-origin claim about a product or service unless the claim is not misleading and they have a reasonable basis that substantiates their claim. It also requires Grindle and Electrowarmth to make certain disclosures about the country of origin of any product subject to the Textile Fiber Products Identification Act, and to provide compliance reports. The FTC announced approval of the final order in October 2022.