A Florida-based company will pay a fine to the Federal Trade Commission after it made false patriotic claims about its products, proceeds and ownership.
The company EXOTOUSA operating as Old Southern Brass claimed on its website that all products were "100% American made", the company was veteran-operated, it donated 10% of its proceeds to charity, and some of its products use former-military supplies, according to a Wednesday release by the FTC.
“This company and its owner’s brazen deception cheated consumers who wanted to support U.S. manufacturing, veteran-operated businesses, and veteran charities,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “We will continue to hold accountable those who profit from false Made in USA and military association claims.”
The FTC complaint against the company alleges that many products sold on the website were made partially or wholly in China. Further, the owner of the company is not a veteran, it donated less than 0.5% of its sales to charity in 2022, and the products did not use bullets formerly fired by the U.S. military, the complaint states.
These findings lead to two counts of false and misleading advertising, according to the complaint, which "constitute unfair or deceptive acts or practices in or affecting commerce," violating the Federal Trade Commission Act.
The proposed consent order, which will carry the force of law once it becomes final, found Old Southern Brass liable for more than $4.5 million. However, the company is unable to pay that, and instead must pay the FTC fine of $150,000, according to the FTC. The company is also prohibited from making any false claims about its products moving forward.
The company and its owner have agreed to the order, the release states. Old Southern Brass did not respond to USA TODAY's request for comment.
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Evidence outlined in the complaint showed Old Southern Brass claimed patriotic associations in marketing and product descriptions.
One blog post titled "A Quick Guide to Patriotic Christmas Gifts for Men and Women," claimed that "all of our products are made right here in the United States of America," at the time of the complaint.
The company also sold a whiskey glass engraved with the U.S. Constitution, saying that each glass was made by hand at a workshop in Florida, the complaint stated.
Rather, the FTC found the products were imported from China on many occasions.
Old Southern Brass also sells various items shaped out of bullets or embedded with bullets.
Social media posts and product descriptions show the company claimed the bullets were once used by the U.S. Military, which the FTC deemed untrue.
Old Southern Brass has since removed the claim from its website.
