Apparel Company Fined $200K for “Made in USA” Fraud

A Utah-based apparel brand called Lions Not Sheep has been fined $211,335 by the Federal Trade Commission after it was determined the company had been falsely claiming its products were “Made in USA.”

The FTC says the company ripped “Made in China” tags out of apparel and replaced them with phony “Made in USA” labels. In addition to the monetary judgment, the FTC’s order requires Lions Not Sheep and its owner, Sean Whalen, to stop making bogus Made in USA claims and disclose its foreign production.

More specifically, Lions Not Sheep must stop claiming that products are made in the United States unless it can show that the product’s final assembly or processing – and all significant processing – takes place here and that all or virtually all components of the product are made and sourced here.

On the FAQ page of its website, Lions Not Sheep now states the following:

“Since we buy from multiple vendors and suppliers, each product will have its own source of origin labeled with an attached product tag showing the source of where the original product was made/manufactured.

“The original un-printed/embroidered blank garments are sourced from international and domestic suppliers … our blank garments/items that are purchased internationally are shipped to the USA to be printed, embroidered, laser engraved, tagged, and bagged all inside the USA.

“… Lions Not Sheep purchases blank garments from well-known suppliers such as Independent Apparel, American Apparel, Next Level, and others. These manufacturers make their blank products in countries such as China, Colombia, Bangladesh, and other countries around the world.”

Lions Not Sheep is known for producing apparel with messaging and images typically associated with right-wing and conservative political groups. The company offers men’s and women’s apparel, hats, stickers, and various accessories, and it ships a U.S. Constitution booklet with every order.