FTC penalizes parent company of Nectar Sleep over false “Made in USA” ads

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Nectar Sleep- nectar mattresses
Image source: Nectar Sleep website

The Federal Trade Commission (FTC) imposed a penalty against Resident Home LLC,  its owner Ran Reske for making false, misleading, or unsupported “Made in USA” advertisements.

Resident Home LLC is the parent company of Nectar Brand LLC better known as Nectar Sleep. The company is also doing business as DreamCloud Sleep, Awara Sleep, Level Sleep, Bundle Living, 1771 Living, Cloverlane, Wovenly Rugs, Sleep
Authority, and Home Well Designed.

According to the FTC, Resident Home and Reske are repeat offenders. In 2018, the defendants settled the Commission’s complaint alleging they falsely advertised that their mattresses were “Designed and Assembled in USA.” In reality, their DreamCloud mattresses are wholly imported from China.

Under the 2018 settlement, the defendants were prohibited from making unqualified Made in USA claims for mattresses, other products, or services. The Commission prohibited Nectar Brand, its officers, and other company representatives from making false, or unsubstantiated country-of-origin claims in their marketing materials regarding any product or service.

Nectar Sleep parent company and its owner to pay a $753,300 fine

On Friday, the FTC said its current Order requires the defendants to pay a civil penalty of $753,300. It also included the terms of the 2018 order and expanded the application to Nectar Sleep and all the entities controlled by Reske.