UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580

Division of Enforcement
Bureau of Consumer Protection

Mr. John David Bothum
Mr. Mark Bothum
Co-Presidents
Enderes Tool Company
P.O. Box 240189
Saint Paul, MN 55124 Re: Enderes Tool Company, File No. 992-3172

Dear Messrs. Bothum:

The Division of Enforcement staff has conducted an investigation involving an allegation that Enderes Tool Company has violated the Federal Trade Commission's "all or virtually all" standard for domestic country of origin claims and Section 5 of the Federal Trade Commission Act. A complaint received by staff alleged that an Enderes ratcheting screwdriver was marked "Made in USA," but that the ratchet assembly of this product is imported.

In order to promote a product with an unqualified domestic origin claim, a product should contain no more than a de minimis or negligible amount of foreign content. Because the ratcheting mechanism of Enderes's ratcheting screwdriver is imported, an unqualified domestic origin claim
is not appropriate. Enderes, however, states that this product is the only one of Enderes's 400 products that is not 100 percent made in the United States, and that this product was inadvertently marketed as "Made in the USA." Enderes assures staff that it has deleted the statement "Made in USA" from the product's handle, and has placed stickers on existing promotional materials that state, clearly and prominently, that the ratcheting mechanism is imported. Enderes also states that it has ordered new promotional materials that include this statement.

The staff has concluded that no compliance action against Enderes is indicated at this time. Accordingly, the investigation has been closed. This action is not to be construed as a determination that a violation may not have occurred, just as the pendency of an investigation should not be construed as a determination that a violation has occurred. The Commission reserves the right to take such further action as the public interest may require.

Sincerely,

Elaine D. Kolish
Associate Director

cc: Mr. John A. Clifford
Merchant, Gould, Smith, Edell, Welter, & Schmidt, P.A.
3100 Norwest Center
90 South Seventh Street
Minneapolis, MN 55402-4131

Last Modified: Monday, 25-Jun-2007 16:46:00 EDT