FTC refunds consumers over false 'Made in USA' claims by Cycra

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Lina M. Khan Chair of the Federal Trade Commission | Official website

FTC refunds consumers over false 'Made in USA' claims by Cycra

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The Federal Trade Commission (FTC) has announced that it is disbursing over $180,000 in refunds to consumers who were deceived by false Made in USA claims made by Cycra, a manufacturer of motocross and ATV parts. According to the FTC's complaint filed in June 2023, from 2019 until at least May 2022, Cycra falsely claimed on its website, social media platforms, and product packaging that its products were manufactured in the United States. These claims included a web banner stating, “Proudly designed, developed and manufactured in Lexington, North Carolina,” and product labels featuring the words “Made in USA” alongside an image of the American flag.

However, the FTC alleged that Cycra regularly imported parts from Asia and Europe for its products. Some of these imported parts even arrived in the U.S. already labeled as “Made in USA”.

As part of its remedial measures, the FTC is issuing payments to 889 affected consumers. Most recipients will receive a check via mail which should be cashed within 90 days as indicated on the check itself. Eligible consumers without an address on file will instead receive a PayPal payment that must be redeemed within 30 days.

Consumers with queries about their refund can reach out to Epiq Systems, the refund administrator appointed by the FTC. They can contact Epiq Systems at 855-787-8694 or visit the FTC website for more information about the refund process. The Commission has clarified that it never requires individuals to pay money or provide account details to receive a refund.

The FTC's interactive dashboards offer a state-by-state breakdown of refunds issued in FTC cases. In 2023 alone, actions taken by the FTC resulted in $324 million worth of refunds being issued to consumers across America.

The Federal Trade Commission continues its mission to promote competition while protecting and educating consumers. It reassures consumers that it will never demand money, make threats, instruct you to transfer money, or promise a prize. More information about consumer topics can be found at consumer.ftc.gov, and fraud, scams, and bad business practices can be reported at ReportFraud.ftc.gov.

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