Purple Innovation seeks ITC investigation into trade practices of Chinese producers

The complaint alleges unfair competition in the manufacture of certain pillows, seat cushions and other components and packaging

WASHINGTON, D.C. — Bedding manufacturer Purple Innovation has filed a complaint with the United States International Trade Commission asking the agency to investigate the trade practices of Chinese manufacturers regarding certain pillows and seat cushions.

The Aug. 8, complaint alleges violations of Section 337 of the Tariff Act of 1930 regarding the importation and sale within the United States of these products and other components and packaging.

Details of the complaint were not immediately available. However, according to the U.S. ITC, Section 337 investigations largely deal with unfair imports that involve claims regarding intellectual property rights, including allegations of patent and trademark infringement of certain goods.

They also can address other forms of unfair competition involving the infringement of certain copyrights, misappropriation of trade secrets or trade dress as well as claims of antitrust and false advertising.

The complaint also requests that the Commission issue a limited exclusion order and cease and desist order regarding the products in question.

To view a list of the respondents, which are mostly Chinese manufacturers, click here.

As part of the investigation, the ITC is allowing proposed respondents and other interested parties and members of the public to comment. The ITC said these comments should address “whether issuance of the relief specifically requested by the complainant in this investigation would affect the public health and welfare in the United States, competitive conditions in the United States economy, the production of like or directly competitive articles in the United States, or United States consumers.”

Any filings or comments must be made through the ITC’s Electronic Document Information System (EDIS, https://edis.usitc.gov).

Purple did not respond to a request for comment.

The filing comes on the heels of the company’s latest earnings report for the second quarter ended June 30. Net revenues totaled $144.1 million, down 21.1% compared to the $182.6 million reported during the same period last year. Six month revenues totaled $287.3 million, down 22.1% from the $369 million in revenues reported for the first half of last year.

During the second quarter, the company had a net loss of $8.4 million, or 10 cents per share, compared to net income of $2.6 million, or 4 cents per share, during the same period last year.

For the first half, it had a loss of $22 million, or 29 cents per share, compared to net income of $23.5 million, or 14 cents per share, in the same period of last year.

Thomas Russell

Home News Now Editor-in-Chief Thomas Russell has covered the furniture industry for 25 years at various daily and weekly consumer and trade publications. He can be reached at tom@homenewsnow.com and at 336-508-4616.

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