The MUSIC Group has recently filed suit in U.S. District Court against Peavey Electronic Corporation for false advertising, false patent marking and unfair competition. The suit is based on Peavey’s alleged intentional mislabeling of its products in the U.S. market.
An on-going investigation by the MUSIC Group revealed that Peavey’s products are not labeled in accordance with U.S. patent laws and FCC regulations. Evidence obtained from an independent certified testing lab shows that 7 out of 10 Peavey products tested emit electromagnetic radiation in excess of current government standards.
Senior Vice President of Marketing Costa Lakoumentas commented that “The MUSIC Group has invested millions of dollars in comprehensive testing and compliance labs and in quality control programs to ensure its products are in full compliance with all regulatory standards. Additionally, we also go well beyond the requirements of U.S. regulations by certifying our products through the UL Safety Standards process, thus ensuring our products are safe for consumers. Compliance with federal regulations and safety are top priorities in the MUSIC Group and we expect other companies in the market place to take these matters as seriously as we do.”
The mislabeling lawsuit against Peavey, with its implications on compliance with government laws and FCC regulations, could have a staggering impact on the pro-audio and lighting industries where independent testing has shown a number of product sold by various manufacturers in the U.S. market are non-compliant. Companies that bypass regulatory testing don’t only break the law, they pose potential risks for consumers and create an unfair competitive advantage over manufacturers who spend on testing fees and expensive, compliance-relevant components. Under the law, distributors and dealers who sell non-compliant products are also held liable and face stiff fines and other sanctions.