Washington, D.C. – An alarming case involving mislabeled and misrepresented surveillance equipment used by the U.S. military and other federal facilities demonstrates the importance of applying strong Buy American laws to purchases made by the federal government and the need for enhanced scrutiny of suppliers’ product origin claims.
Federal prosecutors unsealed charges Thursday against Aventura Technologies and seven of its current and former employees, accusing them of defrauding the Federal Government and deceiving American consumers for more than a decade about the origins of the surveillance technology being used throughout U.S. government agencies, including the military.
According to prosecutors, Aventura Technologies sold surveillance cameras labeled “Made in the USA” and certified to its government customers that its products were “manufactured in the United States.” In fact, the equipment was Made in China, raising major national security and cybersecurity concerns.
The case also highlights the immediate need for stronger enforcement of U.S. Country of Origin marking laws at the U.S. ports of entry, along with improved enforcement remedies for deceptive “Made in USA” claims.
Aventura Technologies’ fraud impaired the nation’s security, and is another wake-up call for federal policies to strengthen manufacturing, grow the domestic supply chain for critical technologies, and galvanize our defense industrial base.
Alliance for American Manufacturing (AAM) President Scott Paul said:
“This obviously is a troubling case. Although charges were brought forth on this company and its employees, the fact still remains that the United States is not doing enough to enforce Buy America and country of origin labeling requirements, along with U.S. consumer protection statuses aimed at false and deceptive ‘Made in USA’ claims. These tools must be used to guard against fraud, protect our security interests, and strengthen America’s manufacturing capabilities and supply chains.
“There are things we can do right now to address these challenges. For one, the Trump administration should follow through on its promises to 'Buy American.' The Federal Trade Commission should strengthen enforcement of its ‘Made in USA’ to discourage companies from deceiving consumers. Congress must move ahead with pending legislation to prohibit the use of U.S. taxpayer dollars to purchase rail cars and buses from Chinese state-owned, controlled or subsidized enterprises.
"If these issues are left unchecked, China will continue to use this equipment for espionage and cybertheft. Sadly, the U.S. government right now is rolling out the red carpet for China to do so."
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