‘Repeat Offender’ Will Pay for ‘Baseless’ Made in America Claims: FTC
The United State Federal Trade Commission (FTC) has outlined the claims process for consumers seeking refunds for mattresses from DreamCloud after the company was found guilty of making false “Made in America” claims about its products.
In 2021, the FTC sued Resident Home LLC and its owner, Ran Renske, for making false advertising claims that their DreamCloud mattresses were constructed of 100 percent U.S.-made materials. The FTC found that all DreamCloud mattresses contain a significant amount of imported materials, while some were wholly imported.
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DreamCloud advertised its mattresses as “proudly made with 100 percent U.S.A.-made premium quality materials.” The FTC ruled that consumers who were influenced by the company’s “Made in America” claims to purchase a DreamCloud bed were eligible to apply for a refund.
This wasn’t the first time Resident Home drew scrutiny from the FTC over false claims. In 2018, the company’s subsidiary, Nectar Brand LLC or Nectar Sleep, agreed to an FTC administrative order resolving allegations that it falsely advertised imported mattresses as “Assembled in U.S.A.” Following that order, Renske, under penalty of perjury, said the company never made the same claims about its DreamCloud mattresses, which the FTC found to be untrue.
In addition to offering consumers refunds, the FTC’s 2021 order also included a $753,000 fine and expanded the application of the 2018 order to all of the entities under Renske’s control.
“Baseless claims that products are made in the U.S.A. hurt not only consumers but also honest businesses that build their products here,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in 2021. “Unfortunately, we see too many repeat offenders like Resident Home, but thanks to the FTC’s recently finalized Made in U.S.A. Labeling Rule, companies that abuse these labels will face civil penalties in addition to other relief. We will not hesitate to seek strong penalties against Made in U.S.A. fraud.”
The FTC will send claim notices by mail and email to consumers who purchased a DreamCloud mattress during the period that the company made these false claims. Consumers who made the decision to purchase a DreamCloud based on the company’s false advertising can use the claim number in the notice to file a claim online at ftc.gov/dreamcloud and apply for a refund.
