PPE company sued by FTC over ‘Made in USA’ claims

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PPE Made in USA overview: 

• Who: The FTC filed a lawsuit against Axis LED Group LLC and ALG-Health LLC.
• Why: The companies are accused of falsely claiming their products are ‘Made in USA’ when they are made in China.
• Where: The lawsuit was filed in an Ohio federal court.

An Ohio-based company that makes personal protective equipment (PPE) has been falsely labeling its goods as “Made in USA” when the products are made in China, a new lawsuit filed by the Federal Trade Commission (FTC) alleges.

The FTC filed the lawsuit against Adam J. Harmon and his companies, Axis LED Group LLC and ALG-Health LLC, Aug. 16 in an Ohio federal court, alleging violations of the COVID-19 Consumer Protection Act, the Made in USA Labeling Rule and the FTC Act.

The FTC alleges that, during the pandemic, the company violated the law by swapping “Made in China” stickers on face masks with “Made in USA” labels.

The company also claims that its products are more effective in protecting against COVID-19 than other companies’ products, which is false, the FTC alleges. 

Made in USA lawsuit includes statements from ALG staff

The Made in USA lawsuit includes statements from ALG staff who allege the owner of the company knew he was deceiving customers about where the products were made.

ALG started selling KN95 respirators, gloves and gowns that were imported from China early in the pandemic, the lawsuit states. 

In the complaint, a warehouse manager states that he told his boss he couldn’t say the masks were made in the United States when they were made in China. However, he alleges that Harmon’s response was “not to worry about it” and “that he would take care of it.”

“Probably 90% of the masks Mr. Harmon sold were brought in from China as finished masks,” the warehouse manager says in the lawsuit documents. “Maybe more.”

The lawsuit also states that Axis LED Group marketed and sold LED lights, tubes and fixtures to both consumers and the U.S. government labeled as “Made in the U.S.” when they were made in China. The lights were marketed as “Patriot Tubes.”

The FTC seeks a fine of about $158,000, plus a suspended judgment of $2.8 million.

“ALG and its CEO slapped the ‘Made in USA’ label on masks that were made overseas, and now they’re paying the price,” FTC Director of the Bureau of Consumer Protection Sam Levine says in a statement.  “As Americans struggle to obtain safe, authentic personal protective equipment, the commission will use every tool we have to root out false claims and phony labels.”

Meanwhile, inflation is causing American consumers to rethink purchasing American-made products, according to a new shopping preferences poll.

What do you think of the allegations of deception about the products being ‘Made in USA’? Let us know your thoughts in the comments! 

The FTC is represented by Brian Boynton, principal deputy attorney general, Civil Division.

The ALG PPE Made in America lawsuit is U.S. v. Axis LED Group et al., Case No. 3:22-cv-01389, in the U.S. District Court for the Western District of Ohio. 

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