itc decides false advertising claim under section 337

The USITC issued a general exclusion order against certain woven textile fabrics and products that are falsely advertised by misrepresenting the thread count.  Certain Woven Textile Fabrics and Products Containing Same, Inv. No. 337-TA-976 (Mar. 20, 2017).  AAVN filed a complaint alleging Section 337 violation in the importation into the U.S. and the sale of certain woven textile fabrics and products based upon false advertising claims.  Fourteen of the fifteen respondents settled and ALJ Essex granted AAVN’s motion of summary determination against the last remaining respondent Pradip Overseas Ltd., where Pradip’s “800 Thread Count” bed sheets were measured by AAVN at 252 threads.  In affirming the ALJ’s grant of a GEO, the Commission agreed the GEO is appropriate given the pattern of widespread violation and the difficulty in identifying the source of infringing products.  The decision highlights Section 337’s broad reach into unfair acts in importation beyond the typical patent or trade secret investigations.