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Oct 19, 2016

Today From The FTC - October 19, 2016: FTC Presents Criminal Liaison Unit Award to Fraud and Cybercrime Unit of the U.S. Attorney’s Office for the Southern District of New York | Manufacturer of Kwik Fix, Hammer Tite, and Krylex Glues Settles with FTC, Agrees to Drop Misleading ‘Made in USA’ Claims



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The Federal Trade Commission is honoring the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York with its Criminal Liaison Unit’s Prosecuting Attorney’s Award.  The Criminal Liaison Unit presents the award annually to recognize those prosecutors who demonstrate an exceptional commitment to consumer protection in partnership with the FTC.
The Complex Frauds Unit is tasked with prosecuting financial fraud and addressing the threat of cybercrime. The unit has a long-standing partnership with the FTC in protecting consumers from fraud. In the last year alone, it has successfully prosecuted dozens of individuals for their participation in mobile cramming, fake and abusive debt collection, and deceptive payday lending schemes. At an awards ceremony held in New York on October 19, 2016, FTC Associate Director James Kohm said, “This award honors the dedication and diligence of the Complex Frauds Unit in protecting America’s consumers and bringing the worst fraudsters to justice.”
The FTC often coordinates with criminal law enforcement to ensure the successful prosecution of fraudsters who prey on American consumers. Since its inception ten years ago, the FTC’s CLU has contributed to the successful criminal prosecution of hundreds of fraudulent telemarketers, phantom debt and mortgage relief scammers, immigration fraudsters, and others who prey on American consumers.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

Contact Information

MEDIA CONTACT:
Office of Public Affairs
202-326-2180
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Chemence, Inc. to Pay $220,000
Georgia-based specialty chemical company Chemence, Inc. will stop making misleading unqualified claims that its strong, fast-acting glues are made in the United States, under a settlement with the Federal Trade Commission.
Chemence also has agreed to pay a $220,000 judgment to resolve the lawsuit the FTC brought against the company in February 2016.
In its complaint against Chemence, the FTC alleged that the company deceived consumers by making “Made in USA” or “Proudly Made in USA” claims for its cyanoacrylate glue products such as Kwik Fix, Hammer Tite, and Krylex. While Chemence’s claims allegedly implied that the products were all, or virtually all, made in the United States, approximately 55 percent of the costs of the chemical inputs to Chemence’s glues are attributable to imported chemicals that are essential to the glues’ function, according to the FTC. The complaint also alleged that Chemence assisted others in deceiving consumers by distributing its Made-in-USA marketing materials to private-label sellers and third-party websites and storefronts.
Chemence Product Packaging:
 U.S. flag with text 'Made in USA'. Also says 'Chemence Inc. Contents proudly made in the U.S.A.'
The stipulated final order 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. The order permits Chemence to make qualified “Made in USA” claims as long as they include a clear and conspicuous disclosure about the extent to which the product contains foreign parts, ingredients, and/or processing. Chemence also is prohibited from providing others with the means to make deceptive Made-in-USA claims about its products.
The Commission vote approving the stipulated final order was 3-0. The order was filed in U.S. District Court for the Northern District of Ohio and entered by the court on Oct. 13, 2016.
The FTC’s Enforcement Policy Statement on U.S. Origin Claims provides further guidance on the Made in USA standard.
NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

Contact Information

MEDIA CONTACT:
Betsy Lordan
Office of Public Affairs
202-326-3707

STAFF CONTACTS:
Julia Solomon Ensor
Bureau of Consumer Protection
202-326-2377

Colin D. A. MacDonald
Bureau of Consumer Protection
202-326-3192
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