Nectar Brand settles with Federal Trade Commission

Where Did I Fall Asleep?

Nectar Brand (aka Nectar Sleep and DreamCloud) boasts a great tagline for its mattresses: “The Bed Other Mattresses Dream About.”

As in all dreams, unfortunately, things are not always what they see.

According to the Federal Trade Commission (FTC), the California-based mattress maker was claiming that its products were “Designed and Assembled in USA” when in actuality they were not. In other cases, the FTC claims, Nectar Brand advertised that its products were assembled in the States, which was also untrue.

The “mattresses are wholly imported from China,” notes the FTC in its complaint, “and Respondent performs no assembly operations in the United State."

All these allegations were tucked neatly into a complaint filed on March 13, 2018.

The Takeaway

The allegations in the complaint were resolved by consent order. The consent order addresses both alleged misrepresentations regarding the design and assembly of the mattresses in the USA. It also prohibits Nectar Brand from making unqualified made-in-the-USA claims unless it can prove that every aspect of the manufacture of the mattresses, including all the components involved, takes place in the United States.

The consent order also demands that any qualified claim by Nectar Brand of U.S. origin must be accompanied by “clear and conspicuous” disclosure. And it includes the expected general prohibition against false origin claims in the company’s future marketing materials. This consent order is another example of the FTC taking action against companies that purport their products are fully USA designed and manufactured to curry favor from U.S. buyers, while concurrently reaping the benefits of extraterritorial manufacturing laws.