Johnson Worldwide Associates, Inc

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IN THE MATTER OF JOHNSON WORLDWIDE ASSOCIATES, INC.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3862. Complaint, Apri/6, 1999--Decision, April6, 1999 This consent order, among other things, prohibits Johnson Worldwide Associates, Inc., the Wisconsin-based marketer of outdoor recreation products, including fishing line, from misrepresenting the extent to which any fishing product is made in the United States.

Participants · For the Commission: Kent Howerton, Laura Koss, and Elaine Kalish.

· For the respondent: Rebecca Fry, Foley&Lardner, Washington, D.C.

COMPLAINT The Federal Trade Commission, having reason to believe that Johnson Worldwide Associates, Inc. ("respondent") has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges: 1. Respondent Johnson Worldwide Associates, Inc. ·is a Wisconsin corporation with its principal office or place of business at 1326 Willow Road, Sturtevant, Wisconsin. 2. Respondent has adverti~ed, labeled, offered for sale, sold, and distributed products to the public, including fishing line. 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 Federal Trade Commission Act. . 4. Respondent has disseminated·or has caused to be disseminated packaging for its Spiderwire Super Mono Super Monofilament ("Super Mono") fishing line, including but not necessarily limited to the attached Exhibit A;-lhe front panel of this packaging contains the following statement:

"MADE IN THE USA of American and Japanese components." 5. Through the means described in paragraph four, respondent has represented, expressly or by implication, that its Super Mono fishing JOHNSON WORLDWIDE ASSOCIATES, INC. 431 i ! .

430 Complaint line ts made in the United States of American and Japanese components.

6. In truth and in fact, the Super Mono fishing line is totally made . in Japan with Japan.ese labor and components. Only the spool on which the fishing line is wrapped and the package, labeling, and 'jI package inserts contain American labor or components. Therefore, :. the representation set forth in paragraph five was, and is, false or .: misleading. "' . 7. Respondent has disseminated or has caused to be disseminated advertisements and other promotional materials for its Super Mono fishing line, including but not necessarily limited to the attached Exhibits B through J. These advertisements and other promotional ~aterials contain the following statements and depictions: A. Poster, Exhibit B:

Picture ofthe Super Mono fishing line packaging. The statement "MADE IN THE USA" is legible on the package. The statement "of American and Japanese components" is not visible.

- B. Newspaper Advertisement, Exhibit C:

Picture of the Super Mono fishing line package. The statement "MADE IN THE USA" is legible on the package. The statement "of American and Japanese components" is not visible.

C. Advertising Pamphlet, Exhibit D:

Picture ofthe Super Mono fishing line package on the front cover of the pamphlet. The statement "MADE IN THE USA" is legible on the package. The statement "of American and Japanese components" is not visible. D. Fishing 1998 Catalog, Exhibit E:

Picture of the Super Mono fishing line package on page 5 of the catalog. The statement "MADE IN THE USA" is legible on the package. The statement "of American and Japanese components" is not in a type size sufficiently large for an ordinary consumer to read and comprehend it. E. Fishing 1999 Catalog, Exhibit F:

Picture of the Super Mono fishing line package on page 4 of the catalog. The statement "MADE IN THE USA" is legible on the package. The statement "of American and Japanese components" is not in a type size sufficiently large for an ordinary consumer to read and comprehend it. F. Fishing Ad Planner 1998, Exhibit G:

Picture of the Super Mono fishing line package on page 14 ofthe ad planner. The statement "MADE IN THE USA" is legible on the package. The statement "of American and Japanese components" is not visible. Complaint 127 F.T.C. G. Information Sheet, Exhibit H:

Picture of the Super Mono fishing line package. The statement "MADE IN THE USA" is legible on the package. The statement "of American and Japanese components" is not visible.

H. Product Insert, Exhibit I:

Picture of the Super Mono fishing line package. The statement "MADE IN THE USA" is legible on the package. The statement "of American and Japanese components" is not in a type size sufficiently large for an ordinary consumer to read and comprehend it.

I. Informational Videotape, Exhibit J:

Picture of the Super Mono fishing line package. The statement "MADE IN THE USA" is legible on · the package. The statement "of American and Japanese components" is not visible.

8. Through the means described in paragraph seven, respondent has represented, expressly or by implication, that its Super Mono fishing line is made in the United States, i.e., that all, or virtually all, of the component parts of the Super Mono fishing line is made in the United States, and that all, or virtually all, of the labor in manufacturing the Super Mono fishing line is performed in the United States. 9. In truth and in fact, the Super Mono fishing line·is totally made · in Japan with .Japanese labor and components. Only the spool on which the fishing line is wrapped and the package, labeling, and package inserts contain American labor or components. Therefore, the representation set forth in paragraph eight was, and is, false or misleading.

10. The acts and practices of respondent as alleged in this complaint constitute unfair or d~ceptive acts 9r practices in or affecting commerce in violation of Section S(a) of the Federal Trade Commission Act.

JOHNSON WORLDWIDE ASSOCIATES, INC. 433 430 Complaint EXHIBIT A EXHIBIT B Exhibit B consists of a poster.

It has been placed on the public record of this proceeding. EXHIBIT C Exhibit C consists of a full-page newspaper advertisement. It has been placed on the public record of this proceeding. Complaint 127 F.T.C. EXHIBIT D Reel In Bigger Fishing line Profits With·Spiderwire! Free Membership Offer, Sweepstakes and Roland Martin Display Lure More Customers and Land Extra Sales.

JOHNSON WORLDWIDE ASSOCIATES, INC. 435 430 Complaint EXHIBIT E SpiderWire's superior strength is key to fishermen.

T.'lc:' ~pJcr\t'~rc .....:.d .::c u-:~ .~...... :he hnc ·H:n:th .~n.! :he · ,~c J:unc::~ I· ..-1nr 1rd :.• :nJm110At !! :hm·~ :~~c - ~c u: ~n.cJ ii::: ·-Imrie lil o• ~· "J f·· RF«i :he 1- d ~ . Spu1erWire P~t~3qta9 ;:.; ~-:s: ...: ··:- ·-:~ ~-:- -: ·•.': -!! : : ~jt ' , : '-! ..'•J: ~r;, ·-~ ~ :: !~' .'/ -~s !--:: ·- ~ ;·: .. .. :

EXI'l BIT E Complaint 127 F.T.C. EXHIBIT F SpiderWire's leading fishing lines SpiderWire - . Splde:rWire Braid revolutionized award-winning technology fishing and Is still recognized catches more fish as the superllne leader! Designed with high-tech SpiderWire:'s award-winning Spectra material, SpiderWire: leadership in fishing line Braid's stre:ngth and sensitivity technology is well-known is legendary. within.the fishing industry.

This year, SpiderWtre:'s new In fact, Spide:rWtre Braid.is products were recognized as the: stronge:st, thinnest, most "Best of Show" new fishing sensitive: fishing line in the: lines at the Amencan world. Period. Sportfishing Association SpiderWtre: Riptide Saltwater annual trade: show. Braid is designed for optimum • SpiderWire Super Mono - saltwater performance. Best of Show new Recognize:d as "Best of monofilament. Show·, Riptide Saltwater • SpiderWire: Riptide - Braid is the: world's strongest Best of Show new deepest-fishing line! superllne . .

SpiderWire continues to win industry awards because: our fishing pros and fishing line experts are dedicated to making SpiderWire the: best performing premium fishing line in each line category.

SQidcrwtrc P4ck4.ginl) uand5 out from tnc boc ctuner 1( cluttr ddfcrcnd4tcs the d'Wcc SoidctV/'Itc hnci M\d t.hc:W 1'1~.,, .t()p[lc.thNI~ a EXHIBIT f' JOHNSON WORLDWIDE ASSOCIATES, INC. 437 430 Complaint EXHIBIT G S -P -1- E>·E R" WIR-E . S ·P ·I· DE R-W·I R e:- SP+DERWIRe:- · - hfl.l.iiil I II I Mil I - i&Oj-1.1 11¥ I I I I Mil I + -1 .& I I IF I Mil 1 Premium Braid Super Mono Fusion Spiderwire . Spiderwire Spiderwire Fusion Microfilament Superline · Super Mono line F~sed Microfilament • Supet Strengm ·superline n~.om~ Only rhe world's one superfine 10 lee( • Ultra f4!1'\llll"'1: mofe hsh m.icro·h~e aoncis together doz:ent of . prOducu produce Motto . -::!NkJ Super diomc lt1'\ • utrra·lhin 5upe4'"·strong fib.n to «11ure Spcocrro f.~t tr<:J uroncJ I~t • ie ~tto and I ur•ngrh ptu\ • Round con\rrvciiOtl uce~llent obrosiort resillance a nd vnparon~ed obt0\1011 rem tonce. •Mtani t k"et<h Neor·t~ro • hook lef\ IQf' mini~ dUtabrftfy. memory. reel plu1 • UV resi; IOI"CO . complete UV ond chMlicol thi\fonca. • No teef memofY II blo--' ttylon monofiloment line• out • . Acid and chetni:col r~$isrance of !'he water. -· '·'41·'·'·111·1·' ~ $oo· $00 $00 5-P- 1- B - E- R -·W-1- R · E -· M t C A Ofl'l l..AM I':NT S U ,..I! Rt.. tnt: s-P-1- E>- E · ·R w~ 1- R -£ ·.

M lC ._O ,..I l..-.MENr SV P 4!' ~ LI ~ 8 S - P - 1- e E· R W I R e:· ·F ·usion ·Fusion, Super .-·Mono Premium Super Mo_no. Premium -Braid Super Mono .Premium Braid EXHIBIT G Complaint 127 F.T.C. EXffiBITH SPIBER'#IRE' SPIDCRWIRE' SPIDER\IIR~· Premium Braid Fusion Super Mono .... POfiOAMANCE ~tllt.ilimlb~ ~®fla!iim~ IJ:ilm~ ~liililliD _ ___ ............ 1111 _,.......,, Soc>-*r_W_tomg_ , ~ ~aum~ .... .. -·..- ~lii!;W) ___·--_ ~llil~~(ljjJ-.oy~W-, .... _ ..._ --~~__ _ -~ !1;)\lllM IY!Dm~ ~titili. ~~ ., ..__.,_ ----.----- · -!liliil~____ ----..~-.. ,.._...,_ -- ------ --- ------ --- EXHIBIT H JOHNSON WORLDWIDE ASSOCIATES, INC. 439 430 Complaint EXHIBIT I Exhibit I consists of a product insert.

It has been placed on .the public record of this proceeding. EXHIBIT J Exhibit J consists of an .informational videotape. It has been placed on the public record of this proceeding. 440 FEDERAL TRADE COMMISSION' DECISIONS Decision and Order 127 F.T.C. DECISION AND ORDER The Federal Trade Commission having initiated an investigation . I of certain acts and practices of the respondent named in the caption I hereof, and the respondent having been furnished thereafter with a copy of a draft complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if ~sued by the Commission, would charge respondent with violations of the Federal Trade Commission Act; and The respondent, its attorney, and counsel for the Commission having thereafter executed an agreement containing a consent order, and admission by the respondent of all the jurisdictional facts set forth in the draft complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as alleged in such complaint, or that the facts as alleged in such complaint, other than jurisdictional facts, are true, and waivers and other provisions as required by the Commission's Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondent violated the said Act, and that a complaint should issue stating its charges in that respect, and having thereupon accepted the executed.I consent agreement and placed such agreement on the public record for a period of sixty ( 60) days, now in further conformity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional fmdings, and enters the following order:

!.Respondent Johnson Worldwide Associates, Inc. is a Wisconsin corporation with its principal office or place of business at 1326 Willow Road, Sturtevant, Wisconsin.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER I.

It is ordered, That respondent, Johnson Worldwide Associates, Inc., a corporation, its successors and assigns, and its officers, agents, representatives, and employees, directly or through any corporation, JOHNSON WORLDWIDE ASSOCIATES, INC. 441 430 Decision and Order subsidiary, division, or other device, in connection with the manufacturing, marking, labeling, packaging, advertising, promotion, . II offering for sale, sale, or distribution of any fishing product in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act, 15 U.S .C. 44, shall not misrepresent, in any manner, directly or by implication, the extent to which any such product is made in the United States. ·For purposes ofthis order, fishing product means any prodl:lct that is intended to be used for fishing, including but not limited to fishing rods, fishing reels, fishing -line, fishing lures, and fishing spoons.

Provided, however, that a representation that any fishing product is made in the United States·will not be in violation of this order so long as all, or virtually all, of the component parts of the product are made in the United States and all, or virtually all, of the labor in _manufacturing the product is performed in the United States. Provided, further, that respondent shall not make a general U.S . . ~rigin claim, whether or not accomp~nied by qualifying information (e.g., "Made in U.S.A. ofU.S. and imported parts" or "Manufactured in U.S. with imported materials") unless the fishing product was last substantially transformed in the United States, as the term ·"substantially transformed" is defined by regulations or administrative . !' rulings issued by the U.S. Customs Service under Section 304 of the Tariff Act of 1930, 19 U.S.C. 1304.

II.

It is further ordered, That respondent Johnson Worldwide Associates, Inc., and its successors and assigns, shall, for five (5) years after the last date of dissep}ination of any representation covered by this order, maintain and upon request make available to the Federal Trade Commission for inspection and copying: A. All labeling, packaging, advertisements and promotional materials containing the representation;

B. All materials that were relied upon in disseminating the representation; and C. All tests, reports, studies, surveys, demonstrations, or other evidence in their possession or control that contradict, qualify, or call into question the representation, or the basis relied upon for the representation, including complaints and other communications with consumers or with governmental or consumer protection organizations. Decision and Order 127 F.T.C. III.

It is further ordered, That respondent Johnson Worldwide Associates, Inc., and its successors and assigns, shall deliver a copy of this order to all current and future principals, officers, directors, and managers, and to all current and future employees, agents, and representatives having responsibilities with respect to the subject matter of this order, and shall secure from each s_uch person a signed and dated statement acknowledging receipt of the order. Respondent shall deliver this order to current personnel within thirty (30) days after the date of service of this order, and to future personnel within thirty (30) days after the person assumes such position or responsibilities.

IV.

It is further ordered, That respondent Johnson Worldwide Associates, Inc., and its successors and assigns, shall notify the . Commission at least thirty (30) days prior to any change in the corporation that may affect compliance obligations arising under this order, including but not limited to a dissolution, assignment, sale, merger, or other action that would result in the. emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a c_change in the corporate name or address. Provided, however, that, with respect to any proposed change in the corporation about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall n<?tify the Commission as soon as is practicable after obtaining such knowledge. All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. · v.

It is further ordered, That respondent Johnson Worldwide Associates, Inc., and its successors and assigns, shall, within~ ninety (90) days after the date of service of this order, and at such other times as the Federal Trade Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order. JOHNSON WORLDWIDE ASSOCIATES, INC. 443 430 Decision and Order VI.

This order will terminate on April 6, 2019, Qr twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of this order if such complaint -is filed after the order has terminated pursuant to this Part. Provided, further, that if such complaint is dismissed or a federal court rules that the respondent did not ·violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been filed, except that the order will not terminate between . the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or . ruling is upheld on appeal.

444 FEDERAL. TRADE COMMISSION DECISIONS Complaint 127 F.T.C.