UNITED STATES OF AMERICA
In the Matter of
AMERICAN HONDA MOTOR COMPANY, INC., a corporation
DOCKET NO. C-3864
The Federal Trade Commission, having reason to believe that American Honda Motor Company, 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 American Honda Motor Company, Inc. is a California corporation with its principal office or place of business at 1919 Torrance Boulevard, Torrance, California 90501.
2. Respondent has manufactured, advertised, labeled, offered for sale, sold, and distributed products to the public, including lawn mowers.
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 advertisements for its Honda Masters, Honda Harmony II 3-in-1 and Honda Harmony II lawn mowers, including but not necessarily limited to the attached Exhibits A through C. These advertisements contain the following statements:
5. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that its Honda Masters, Honda Harmony II 3-in-1, and Honda Harmony II lawn mowers are made in the United States, i.e., that all, or virtually all, of the component parts of the lawn mowers are made in the United States, and that all, or virtually all, of the labor in manufacturing the lawn mowers is performed in the United States.
6. In truth and in fact, a substantial portion of the components of the Honda Masters, Honda Harmony II 3-in-1 and Honda Harmony II lawn mowers is, or has been, of foreign origin. Therefore, the representations set forth in paragraph 5 were, and are, false or misleading.
7. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.
THEREFORE, the Federal Trade Commission this sixth day of April, 1999, has issued this complaint against respondent.
By the Commission.
Donald S. Clark