Sales of Chinese products off the GSA Schedule has resulted in a $2.3 million False Claims Act settlement.
According to a Department of Justice press release, Samsung Electronics America, Inc. has agreed to the settlement to resolve allegations that Samsung informed GSA Schedule resellers that certain products were manufactured in “designated countries” under the Trade Agreements Act, when in fact those products were manufactured in China.
GSA Schedule contracts require that vendors certify that their products comply with the Trade Agreements Act. The TAA, in turn, generally requires that the government buy products manufactured in the United States or in a “designated country” with which the United States has a trade agreement. Many countries are designated countries under the TAA, but China is not a designated country.
Samsung has designated resellers who hold GSA Schedule contracts. Samsung certifies to its resellers that its products are TAA compliant, and those resellers then offer the products for sale off their Schedule contracts.