The Federal Trade Commission (FTC) is taking action against Florida-based EXOTOUSA LLC, also known as Old Southern Brass, and its owner, Austin Oliver. The company is accused of falsely claiming that its products were made in the U.S., that the company was operated by a veteran, and that it donated 10 percent of its sales to military service charities.
The proposed FTC order seeks to halt these deceptive claims and demands a monetary judgment from the company and Oliver.
The FTC complaint highlights multiple instances where Old Southern Brass stated on its website and in advertising that its products were manufactured in the United States. Despite these claims, several of the company’s products were entirely imported from China or contained significant imported content.
The complaint also details numerous occasions where Old Southern Brass claimed an affiliation with the U.S. military. This included declarations that the company was veteran-operated, contributed 10 percent of sales to military service charities, and sold products that incorporated bullets or casings used by the U.S. military.
Contrary to the company’s statements, the company was not veteran-operated, and the products sold as being used by the U.S. military were not actually used by the military. The complaint further alleges that the company did not donate 10 percent of sales to veterans’ charities as claimed. In fact, the company’s charitable deductions totaled less than one-half of 1 percent of sales.
The proposed FTC order, which the company and Oliver have agreed to, bans them from making any false or misleading claims, including any association with or support of the U.S. military or veterans. It also mandates that $150,000 must be surrendered to the FTC.
The order establishes several requirements about the claims they make concerning the origin of their products:
- Unqualified claims: The company and Oliver will be barred from making unqualified U.S.-origin claims for any product, unless they can demonstrate that the product’s final assembly or processing, and all significant processing, occurs in the United States, and that all or virtually all ingredients or components of the product are made and sourced in the U.S.
- Qualified claims: The company and Oliver are required to include a clear and conspicuous disclosure about the extent to which the product contains foreign parts, ingredients, or components, or processing, in any qualified Made in USA claims.
- Assembly claims: The company and Oliver must also ensure, when claiming a product is assembled in the U.S., that it is last substantially transformed in the U.S., its principal assembly takes place in the U.S., and U.S. assembly operations are substantial.
The order includes a monetary judgment of $4,572,137.66, which is partially suspended due to the defendants’ inability to pay the full amount. If the Commission finds that the defendants misrepresented their financial status, the full amount of the judgment could become immediately payable.
The Commission vote to issue the administrative complaint and accept the consent agreement was unanimous at 3-0.
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