BUSINESS + ECONOMY

Utah business Lions Not Sheep responds to FTC fraud claims

Aug 10, 2022, 3:12 PM

Lions Not Sheep owner Sean Whalen is pictured...

Lions Not Sheep owner Sean Whalen speaking in his FTC response video. (Lions Not Sheep)

(Lions Not Sheep)

SALT LAKE CITY — Utah-based company Lions Not Sheep has posted a video responding to claims of fraud made by the Federal Trade Commission.

The Lions Not Sheep video features owner Sean Whalen explaining both the history of his company and the history of the company’s manufacturing processes.

According to Whalen, the company was in compliance with FTC standards prior to the time the agency changed its rules in August of 2021.

Whalen notes that the company was out of compliance for a six-week period between the time that the change was implemented and the time that the FTC reached out to Lions Not Sheep about compliance in October 2021.

After going “through the hoops with the FTC,” Whalen said he agreed to pay a fine for the six weeks the company was out of compliance. The fine ended up being $211,335.

Whalen said that the FTC’s claim that the company was ripping Chinese tags out is “fairly egregious” and “completely ridiculous.”

The FTC’s complaint describes an October 2020 Facebook video where Whalen explains that most “Made in America” shirts are made in China.

In that 2020 Facebook video, Whalen says his company screen prints, heat transfers, folds and bags shirts at their Utah manufacturing facility. 

“But those shirts are made in China,” Whalen says after describing the manufacturing process adding that most shirts labeled “Made in America” are made in China.

In his response video, Whalen explained that he paid the fine in order to keep his company going. 

“I’ve got almost 20 employees that rely on a job. They rely on this company moving and thriving and moving forward in order to stay employed,” Whalen explained.

 

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Utah business Lions Not Sheep responds to FTC fraud claims