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| Example of a Counterfeit UL Sticker |
Missouri-based furniture and home decor company GuildMaster was sentenced in federal court after
pleading guilty to importing thousands of lamps marked with counterfeit
"UL" (Underwriter Laboratories) certification mark stickers.
UL is an
independent product safety certification organization accredited for safety
testing by the federal Occupational Safety and Health Administration (OSHA).
If a
product carries an authentic UL certification mark, it means UL found that representative product
samples met UL's safety requirements. These requirements are primarily based on
UL's own published standards for safety. According to the UL website, this type
of mark is seen commonly on appliances and computer equipment, furnaces and
heaters, fuses, electrical panel boards, smoke and carbon monoxide alarms, fire
extinguishers and sprinkler systems, personal flotation devices, bullet
resistant glass, and thousands of other products.
A counterfeit UL sticker has the potential to mislead consumers into believing an electrical item has met the UL's safety requirements, when it may not have.
GuildMaster's website proclaims that "it is every company's responsibility to operate in a manner that is respectful of people and the planet." The company further claims that it has an "open book management" philosophy, in which it encourages its employees to "think and act like owners."
Nonetheless, in
December 2011, U.S. Customs and Border Protection
officials reportedly discovered that thousands of lamps that were being imported into the
U.S. from China by GuildMaster were emblazoned with counterfeit UL labels.
According
to a press release
issued by the U.S. Attorney's Office, GuildMaster, which was
formerly a client of UL, stopped producing its own lamps in 2005. Since 2005,
GuildMaster has purchased lamps manufactured in China and imported them into
the United States under the GuildMaster label.
GuildMaster
maintains that none of its agents or employees had personal knowledge that they
violated U.S. laws by importing the lamps. However, GuildMaster
acknowledges that the knowledge and actions of its subsdiary's employees and
agents are fairly attributed to GuildMaster.
Before
the federal seizures, GuildMaster admitted that it did not inspect lamps coming
from China to ascertain the authenticity of the "UL" certification marks placed
upon the lamps. GuildMaster acknowledges that had it inspected the lamps, its
employees would likely have seen counterfeit and unauthorized UL marks.
The
sentence imposed in federal court requires destruction of nearly two million
dollars worth of the lamps, and 5 years of probation.
Following the
indictment, GuildMaster had filed for Chapter 11 bankruptcy. It
is unclear if the sentence imposed will affect the company's continued
existence, as GuildMaster had recently filed a request to extend time to file its bankruptcy exit plan, citing the government's demands that the lamps be destroyed.
