9823587 UNITED STATES OF AMERICA In the Matter of USDRIVES CORPORATION, a corporation DOCKET NO. C-3866 COMPLAINT The Â鶹´«Ã½ Trade Commission, having reason to believe that USDrives Corporation ("respondent") has violated the provisions of the Â鶹´«Ã½ Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges: 1. Respondent USDrives Corporation is a California corporation with its principal office or place of business at 850 Auburn Court, Fremont, California 94538. 2. Respondent has manufactured, advertised, labeled, offered for sale, sold, and distributed products to the public, including optical drives that read information on compact disc read-only memory discs ("CD-ROM drives"). 3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Â鶹´«Ã½ Trade Commission Act. 4. Respondent has disseminated or has caused to be disseminated packaging and labeling for its CD-ROM drives, including but not necessarily limited to the attached Exhibits A through C. The packaging and labeling contain the following statements and depictions:
5. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that its CD-ROM drives are made in the United States, i.e., that all, or virtually all, of the component parts of its CD-ROM drives are made in the United States, and that all, or virtually all, of the labor in manufacturing its CD-ROM drives is performed in the United States. 6. In truth and in fact, the CD-ROM drives packaged in Exhibits A or B or labeled with the statement in Exhibit C were, or are, assembled in the United States of primarily imported parts. Therefore, the representations set forth in paragraph 5 were, and are, false or misleading. 7. Respondent has disseminated or has caused to be disseminated packaging for its CD-ROM drives, including but not necessarily limited to the attached Exhibits D and E. The packaging contain the following statements and depictions:
8. Through the means described in Paragraph 7, notwithstanding the inconspicuous statement "Made in China," respondent has represented, expressly or by implication, that its CD-ROM drives are made in the United States, i.e., that all, or virtually all, of the component parts of its CD-ROM drives are made in the United States, and that all, or virtually all, of the labor in manufacturing its CD-ROM drives is performed in the United States. 9. In truth and in fact, the CD-ROM drives packaged in Exhibits D or E were, or are, made in China of primarily non-U.S. parts. Therefore, the representations set forth in paragraph 8 were, and are, false or misleading. 10. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Â鶹´«Ã½ Trade Commission Act. THEREFORE, the Â鶹´«Ã½ Trade Commission this sixth day of April, 1999, has issued this complaint against respondent. By the Commission. Donald S. Clark SEAL: |