FTC Says Clothing Store Lions Not Sheep Was Faking Made in USA Labels The agency said it didn't meet the "Made in the USA" criteria.

By Gabrielle Bienasz

Opinions expressed by Entrepreneur contributors are their own.

A clothing company has been fined by the Federal Trade Commission for faking "Made in America" credentials, USA TODAY reported Tuesday.

Lions Not Sheep, an apparel company based in Utah and popular with conservatives, was found to have added "Made in the USA" labels to clothing made in China, according to the FTC's statement, which was announced in late July.

Sean Whalen, founder and CEO, apparently spoke about the practice publicly, per the longer FTC complaint.

In a video on social media, Whalen said that he imported shirts from China and then altered them to send to consumers in the United States, the FTC noted.

"So our shirts are made in America . . . But those shirts are made in China, just like damn near every single made-in-America shirt you're wearing is. This is how it works," Whalen reportedly said in the video, according to the FTC complaint.

The FTC's order will require the company to "stop making bogus Made in USA claims and come clean about foreign production," the agency said.

To count as "Made in the USA," the company needs to indicate, per the statement:

  • All of the final assembly and processing, and any other "significant processing," took place in the U.S.
  • That "all or virtually all ingredients or components of the product," are found and made in the U.S.

Lions Not Sheep Products and Whalen will also be fined $211,335.

The Lions Not Sheep leader pushed back on the agency's characterization of the situation in a video posted on his Facebook and Instagram.

He called it an "absolutely ridiculous barrage of media attacks against me and against Lions Not Sheep."

"We've actually never sold a single shirt that comes from China," he added.

Whalen did not immediately respond to a request for comment via LinkedIn.

The FTC first filed the complaint in May.

Gabrielle Bienasz is a staff writer at Entrepreneur. She previously worked at Insider and Inc. Magazine. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Growing a Business

'Boring' Businesses Are Making Millionaires — and You Can Borrow Their Strategies For Success

The silent growth strategy reveals how understated, steady businesses are quietly creating wealth for entrepreneurs in 2025. By focusing on long-term consistency and incremental progress, these "boring" industries are proving to be gold mines for those willing to embrace stability over hype.

Side Hustle

This Husband and Wife's 'Happy Accident' Side Hustle Hit $467,000 Revenue Fast — Now It Makes Over $1 Million a Year: 'We're Scrappy'

Charlene and Vince Li couldn't find the snack they wanted to see on the shelves, so they created it themselves.

Business News

YouTuber MrBeast Makes More Money From His Side Hustle Than From His YouTube Videos

The 26-year-old creator has racked up hundreds of millions of views and subscribers on YouTube, but it isn't his main moneymaker.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

JPMorgan CEO Jamie Dimon Says Only One Group Is Complaining About Returning to the Office

In a new interview, Dimon said remote work "doesn't work" and noted some JPMorgan employees were checking their phones while he was speaking in a meeting.

Operations & Logistics

The Success of a New Product Launch Comes Down to One Detail, According to This Expert

A veteran consumer product officer shares the corporate strategy that small business owners can use to boost sales and loyalty.