Antitrust Law Daily Wrap Up, ADVERTISING NEWS: FTC alleges ‘superglue’ manufacturer made false, misleading representations, (Feb 2, 2016)

By Michael Menzhuber, J.D., LL.M.

Chemence, Inc. violated Section 5(a) of the Federal Trade Commission Act by falsely representing that its cyanoacrylates (strong, fast-acting glues), such as Kwik Frame, Kwik Fix, and Krylex, are made in the United States, according to a complaint filed by the FTC in the federal district court in the Northern District of Ohio (FTC v. Chemence, Inc., February 1, 2016).

Chemence has advertised, marketed, distributed, or sold its strong, fast-acting glues to consumers throughout the United States, the FTC claims. In addition, Chemence’s advertisements, packaging, and promotional materials for these products purportedly contain, among other things, the following statements: “Proudly Made in the USA” and “Made in the USA.”

The FTC’s complaint alleges that a significant proportion (approximately 55 percent) of the cost of the chemical inputs of Chemence’s strong, fast-acting glues is attributable to imported chemicals. Consequently, the Commission claims that Chemence’s representations that its strong, fast-acting glues are made in the USA constitute deceptive acts or practices in or affecting commerce, in violation of Section 5(a) of the FTC Act.

The FTC’s complaint requests: (1) preliminary injunctive and ancillary relief as may be necessary to avert the likelihood of consumer injury during the pendency of its action and to preserve the possibility of effective final relief, including but not limited to, temporary and preliminary injunctions; (2) a permanent injunction to prevent future FTC Act violations by Chemence; (3) such relief as the court finds necessary to redress injury to consumers resulting from Chemence’s violations of the FTC Act; and (4) an award of costs of bringing the action.

News: Advertising FederalTradeCommissionNews