UNITED STATES OF AMERICA
In the Matter of
THE BLACK & DECKER CORPORATION, and
The Federal Trade Commission, having reason to believe that The Black & Decker Corporation and Kwikset Corporation ("respondents") have 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 The Black & Decker Corporation is a Maryland corporation with its principal office or place of business at 701 East Joppa Road, Towson, Maryland 21286.
2. Respondent Kwikset Corporation is a California corporation with its principal office or place of business at 1 Park Place, Suite No. 1000, Irvine, California 92714. Kwikset Corporation is a wholly owned subsidiary of The Black & Decker Corporation.
3. Respondents have manufactured, advertised, labeled, offered for sale, sold, and distributed products to the public, including residential locks and lock systems.
4. The acts and practices of respondents alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act.
5. Respondents have disseminated or have caused to be disseminated advertising and packaging for certain of its Kwikset products, including but not necessarily limited to the attached Exhibits A through H. The advertising and packaging contain the following statements or depictions:
"Kwikset PLUS Quality . . . *Made in the U.S.A."
6. Through the means described in Paragraph 5, respondents have represented, expressly or by implication, that certain of its locks and lock systems are made in the United States, i.e., that all, or virtually all, of the component parts of such locks and lock systems are made in the United States, and that all, or virtually all, of the labor in manufacturing such locks and lock systems is performed in the United States.
7. In truth and in fact, a significant portion of the components of certain of respondents' locks and lock systems is, or has been, of foreign origin. Therefore, the representation set forth in Paragraph 6 was, and is, false or misleading.
8. The acts and practices of respondents 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 __ day of __________ 2000, has issued this complaint against respondents.
Donald S. Clark