The disturbing Lions Not Sheep scandal reveals how corporate greed under neoliberal capitalism misled consumers with false “Made in the USA” claims.

Few corporate scandals capture the strenuous interplay between profit-driven ambitions and public trust more clearly than the recent allegations from the Federal Trade Commission against Lions Not Sheep, a clothing brand that marketed its apparel and accessories as proudly “Made in the USA.”

According to the Federal Trade Commission (FTC), Lions Not Sheep and its owner, Sean Whalen, not only misrepresented the origin of many of their products but also engaged in deceptive labeling—removing “Made in China” tags and replacing them with “Made in the USA” labels.

While the FTC’s legal complaint itself is damning—detailing how Lions Not Sheep allegedly fed off widespread consumer enthusiasm for American-made goods—its implications reach far beyond one apparel company’s marketing claims. This case offers a lens into systemic issues under neoliberal capitalism, where deregulation, weakened oversight, and the relentless pursuit of higher margins often embolden unethical corporate conduct. In a landscape where branding can trump transparency, Lions Not Sheep stands as a poignant example of how truth-in-marketing regulations still matter—and how they can be systematically undermined.

What makes this particular case remarkable is the brazenness of the alleged misconduct. The FTC complaint cites promotional videos and social media posts in which Lions Not Sheep boasted about its American roots, while omitting or obscuring the fact that many of its T-shirts and hats were imported. Indeed, the brand’s story hinged on patriotic imagery—bold statements, flags, slogans, all capturing a familiar “local hero” narrative designed to resonate with consumers who value goods that are domestically produced. Yet behind these carefully curated visuals, the complaint says, the real supply chain was international, with the garments themselves originating outside the United States.

In the sections that follow, we will dissect the legal allegations, the context they highlight, and the broader social and economic ramifications for everyday workers and communities. We will also explore the systemic factors that encourage such alleged corporate misconduct, from the minimal legal consequences often associated with false labeling to the structural inequalities that allow corporations to flourish despite harming the public trust. Along the way, we will see how this story reflects the larger narrative of late-stage capitalism, where corporations, more often than not, have the incentive to cut corners—even if it means misleading consumers who genuinely want to support American-made products.

By investigating Lions Not Sheep’s predicament through an expansive lens, we can illuminate recurring themes of corporate greed and wealth disparity, examining how the alleged misconduct might harm not only consumers’ wallets but their sense of trust in the marketplace. This is not merely about one brand’s T-shirts or hats; it’s about the broader interplay of regulatory capture, profit maximization, and weak enforcement that continues to place consumers—and workers—in the crosshairs of corporate ambitions.

In essence, the Lions Not Sheep case is a cautionary tale. It reminds us that when oversight is lax and economic incentives skew in favor of short-term profits, the line between legitimate enterprise and unethical exploitation can blur, leaving everyday people disillusioned and entire communities at risk.

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Corporate Intent Exposed

From everything alleged in the FTC’s complaint, the story of Lions Not Sheep centers on deliberate efforts to portray goods as being made in America, despite strong evidence to the contrary. The brand’s marketing campaigns placed American identity at the forefront of its image—stars-and-stripes aesthetics, references to patriotism, and a general assumption that supporting the brand was tantamount to supporting American manufacturing.

The Alleged Facts

The FTC complaint details several key points:

• False or Misleading Labeling: Numerous Lions Not Sheep products that prominently featured “Made in USA” labels were, in fact, imported or contained significant imported content.
• Removal of Origin Tags: From May 2021 to October 2021, the company is accused of removing or obscuring garment tags that indicated foreign origins, often China, and replacing them with claims of U.S. origin.
• Heavily Marketed via Social Media: Lions Not Sheep harnessed social media to propagate its narrative—touting patriotic themes, referencing American manufacturing pride, and, according to the FTC, misleading consumers about the origin of its products.

These allegations paint a picture of a brand that was not simply careless about its sourcing but was intentionally exploiting patriotic sentiment to boost sales. Lions Not Sheep, after all, went out of its way to characterize itself as authentically American, fueling an image that resonated with audiences who believed in the importance of supporting local industries.

Insights into Corporate Intent

If the accusations are true, they speak to a conscious strategy: The company not only recognized the marketing power of “Made in the USA” but also understood that the brand’s message had to look beyond mere marketing copy to labels themselves. Indeed, “the label is the law,” so to speak—consumers’ final source of truth. A company that invests resources in physically swapping garment tags is not simply overhyping its products in a commercial or burying disclaimers in fine print; it is, per the complaint, carrying out actions that strongly suggest a deliberate scheme to deceive buyers.

In the Broader Corporate Landscape

In the grand scheme of corporate misconduct, the alleged actions of Lions Not Sheep might seem mundane compared to massive financial frauds or environmental disasters. But the significance lies in the clarity of the violation: If your product claims to be American-made, it must be substantially manufactured or processed in the United States. The moment you remove a “Made in China” label and replace it with “Made in the USA,” you cross a bright legal line—and that line is drawn precisely to protect consumers from false claims.

This is why the allegations are so devastating. They speak to the brand’s fundamental identity—a brand built around not following the herd, ironically, may have betrayed the trust of those who took that rebellious, patriotic messaging at face value. This underscores a broader pattern in which brands co-opt nationalistic or community-based themes, especially under neoliberal capitalism’s pressure to differentiate in the marketplace. The more a company can appear to embrace local authenticity, the more it can stand out.

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The Corporations Get Away With It

The question that arises—and that resonates with consumers who feel burned when such stories come to light—is: How do companies manage to escape detection in the first place? And even if they are eventually caught, are the penalties severe enough to deter future misbehavior?

The Role of Loopholes and Tactics

Under U.S. law, “Made in the USA” claims carry strict stipulations. A product must be “all or virtually all” made in the United States, including final assembly. Yet, as the Lions Not Sheep complaint alleges, many items were substantially foreign-made. The brand’s alleged tactics included:

1. Physical Tag Swapping: This suggests the brand was well aware that consumers look at labels as a reliable indicator and that retailers rely on them for compliance.
2. Marketing Sleight of Hand: The promotional content heavily leaned on patriotism, overshadowing any nuance about partial domestic processing.

In a typical chain of accountability, multiple parties can discover or question such claims. Distributors can be suspicious if the product origin does not match shipping records. Competitors with a truly U.S.-based supply chain might suspect and report anomalies. In practice, however, when a company’s distribution scope is relatively manageable and the brand sells directly to consumers through e-commerce, the margin for immediate detection shrinks.

Regulatory Capture and Minimal Enforcement

A recurring lament is that agencies like the FTC, while mandated to enforce truth-in-advertising rules, often cannot proactively police every single brand, especially smaller ones that do not draw immediate public scrutiny. The complaint states that Lions Not Sheep “ceased their unlawful activities only after learning the FTC was investigating them.” This highlights a structural problem: In a deregulated environment where enforcement budgets are finite, the impetus for compliance often hinges on the fear or presence of an active investigation, rather than a strong moral or legal compass.

Moreover, the question of “getting away with it” extends beyond whether the company is punished—it also touches on the potential cost-to-benefit analysis that a firm might perform. If labeling a garment as American-made can spike sales significantly, and the likelihood of a large penalty is low (or comes only after years of profitable misrepresentation), then from a purely self-interested perspective, the short-term profit might outweigh the long-term risk. This is precisely why advocates for stricter enforcement argue that penalties need to be far more punitive to deter such behavior under a profit-maximization model.

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The Cost of Doing Business

At first blush, the mislabeling of T-shirts and hats may seem trivial compared to the epic scale of corporate misconduct in other sectors. Yet focusing exclusively on the immediate facts misses a crucial dimension: the economic fallout. When corporations misrepresent their products, they erode trust in the overall market for genuinely American-made products, damaging legitimate domestic industries and tarnishing the concept of brand origin as a whole.

Economic Fallout and Profit Maximization

In a system that encourages corporations to maximize profits, cost savings are often sought by outsourcing labor and materials. Indeed, for many brands, it’s cheaper to import shirts from abroad and then do the finishing work stateside. However, that approach limits any genuine “Made in the USA” claim. The complaint against Lions Not Sheep highlights that the brand saw value in turning that partial or negligible domestic finishing into a sweeping statement of American origin, presumably to charge a premium or attract more customers.

Undermining Authentic Domestic Producers

Imagine you are a small clothing line that invests in a U.S.-based supply chain. You pay higher wages and follow stricter regulations, which translates to higher costs—but also the lawful right to label your products as “Made in the USA.” Then a competitor comes along, secures lower production costs via overseas suppliers, but slaps on a “Made in America” label anyway, whether truthfully or not. The marketplace becomes tilted. Authentic domestic producers struggle to compete with lower-priced, misrepresented goods. This not only harms those producers’ bottom line, but also, ironically, undermines the entire premise of supporting American manufacturing, as consumer skepticism can grow once false claims are exposed.

Buyer Confusion and Devaluation

The intangible cost is consumer trust. “Made in the USA” has intangible brand equity—it appeals to patriotism, perceived quality, and local job creation. When consumers discover that certain brands can simply claim it without consequence, they might discount the label altogether. In this way, such false claims degrade one of the few signals that conscientious buyers rely on when trying to make ethically or patriotically motivated purchases.

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Systemic Failures

The Lions Not Sheep saga spotlights the structural weaknesses that enable such alleged deceptions to slip through the cracks. Neoliberal capitalism, in practice, often deregulates industries under the assumption that the market will self-correct or that consumer vigilance will be enough to discipline corporate wrongdoing. Yet the illusions spun by Lions Not Sheep—if the complaint’s charges hold true—show how easily motivated companies can circumvent those minimal checks and balances.

Deregulation in Action

One hallmark of neoliberal capitalism is the shift of responsibility away from government oversight and onto consumers. Regulations that do exist—like labeling laws and “Made in the USA” standards—rely heavily on post-hoc enforcement. In other words, a company is presumed to be telling the truth until enough complaints or evidence accumulate to spark an investigation. This approach, while less burdensome to honest businesses, can become a golden opportunity for unethical operators.

Additionally, the presence of third-party websites and social media platforms as major sales channels complicates oversight. When a single brand can directly reach millions of consumers on social media without going through brick-and-mortar retail compliance checks, the impetus to maintain accurate labeling can erode. The complaint against Lions Not Sheep underscores that a significant portion of their marketing took place online—through direct posts, promotional videos, and e-commerce listings.

Regulatory Capture and Lax Enforcement

Even when laws exist, corporations—especially well-funded ones—can engage lobbyists or legal counsel to exploit loopholes or challenge enforcement in protracted legal battles. While Lions Not Sheep is not a multinational conglomerate with an army of lobbyists, its case exemplifies how, under a regulatory regime that is not robustly funded or empowered, smaller and midsized firms can slip under the radar for considerable lengths of time.

When violations do surface, enforcement might be reactive, slow, or accompanied by settlements that some see as insufficient deterrents. The complaint states that Lions Not Sheep voluntarily ceased its alleged illegal activities only after learning the FTC was onto them. But consider how many months or years the brand may have benefitted from the deception before it came to the Commission’s attention.

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This Pattern of Predation Is a Feature, Not a Bug

For many critics of the current late-stage capitalist economic order, these alleged acts are not anomalies, but predictable outcomes of a system that prizes shareholder returns over public wellbeing. The repeated pattern—where a company discovers it can exploit patriotic sentiments, obscure supply chain data, and outcompete honest players—underscores how corporate greed can function like a logical extension of profit-driven imperatives.

From “Fake Organic” to “Fake American”

Analogous cases abound in other sectors. Think of “organic” food labels that do not actually meet organic standards, or “natural” health supplements that contain synthetic chemicals. The same dynamic emerges: The corporate entity uses trust-laden language or branding that suggests authenticity. Only later do lawsuits or regulatory actions reveal the gap between marketing and reality. The chain-of-events that unfolds often looks eerily similar:

1. Corporation identifies a lucrative niche (e.g., “organic,” “American-made”).
2. Corporation invests heavily in marketing that niche, overshadowing or concealing any contradictory truths.
3. Sales skyrocket, with brand loyalty hinged on these claims.
4. At some point, a whistleblower, competitor, or regulatory entity uncovers the discrepancy.
5. The corporation faces fines or a settlement—often a fraction of the ill-gotten gains.

The Lions Not Sheep legal story exemplifies this: The brand found a patriotic niche and capitalized on it, according to the FTC, by openly labeling foreign items as domestic. As long as the penalty for getting caught is lower than the money gained from the deception, unscrupulous companies will keep testing boundaries. In this sense, the alleged misconduct is almost built into the system—corporations are often trained to push as far as they can to maximize shareholder value, reining in only when the legal or reputational costs become too high.

The Wealth Disparity Angle

Another dimension is the relationship between corporate misdeeds and wealth disparity. If a company inflates consumer prices based on a patriotic premium or local-labor marketing claim, it essentially extracts more money from consumers—often everyday people—based on false premises. Those extra profits can accumulate at the top, exacerbating wealth disparity. While Lions Not Sheep is not a Fortune 500 corporation, even smaller-scale deceptions can funnel money upward, depriving local communities of honest economic exchange and undermining legitimate domestic manufacturing operations that could provide steady, meaningful employment.

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The PR Playbook of Damage Control

Once a case like this becomes public, corporations often scramble to mitigate the damage—whether through legal settlements, rebranding, or carefully worded press releases. While no single universal script exists, there are recurring strategies we see time and again, drawn from the well-trodden paths of corporate PR.

Denial, Deflection, or “We Made an Error”

Among the standard moves, companies may:

1. Deny the Allegation: Claim that the situation is more complicated, or that the label in question covered only a small product subset.
2. Blame the Supply Chain: Suggest that a third-party supplier mislabeled the goods, disclaiming direct responsibility.
3. Claim an Oversight or Error: Argue that any misleading claims were accidental or the result of an internal miscommunication.

While the Lions Not Sheep lawsuit files do not detail the brand’s specific post-investigation responses, the brand’s promotional materials pre-investigation included statements acknowledging that the shirts often came from China, but then pivoting to claim that finishing work or printing in the U.S. still warranted a “Made in the USA” label. Whether that was a misunderstanding or a deliberate tactic is for the courts to decide—but from a PR perspective, it sets the stage for an “it’s complicated” narrative if the brand finds itself in hot water.

The Spin of Partial Compliance

Another frequent tactic is to comply publicly with regulators—e.g., re-labeling products—but without offering comprehensive transparency. A brand might quietly correct the website listings, only to maintain a certain aura in social media marketing that keeps consumers uncertain about the real supply chain. This halfway measure can be enough to appease regulators but still preserve much of the brand’s cultivated image.

Given the FTC’s allegations, any brand so charged would likely attempt to quell negative press and salvage consumer trust by emphasizing that they “now” comply with FTC rules, positioning themselves as newly vigilant. But the underlying question remains: Did the brand do everything it could to misrepresent its product’s origin, and is it only shifting course because of the legal threat?

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Corporate Power vs. Public Interest

What does this story reveal about the relationship between corporations and the general public? Simply put, it underscores a tension that emerges repeatedly in a neoliberal capitalist framework: the push-and-pull between profit-making entities and the broader interest of consumers, workers, and communities.

Undermining Corporate Social Responsibility

One might argue that “corporate social responsibility” (CSR) is at stake whenever a company is accused of blatantly lying about its products. CSR is predicated on the assumption that businesses will operate ethically, not just legally. In the Lions Not Sheep case, the FTC undercuts any suggestion of socially responsible conduct: If you actively remove “Made in China” labels from garments, you are flouting basic ethical norms of honesty. If a firm willfully deceives the market on this question, one might legitimately ask what else they would be willing to do in the name of profit.

Eroding Public Trust

False labeling also corrodes the basic social contract that underpins commerce. The public interest is served when consumers can make informed choices and vote with their wallets—whether that means supporting domestic jobs, fair-labor factories, or other ethical priorities. Deception short-circuits that mechanism. If widespread enough, it undermines one of the few ways ordinary people can exert influence over corporate policies: refusing to buy from companies that do not align with their values. If consumers can’t trust labels, how can they reward or punish corporate behavior?

The Danger to Broader Public Health and Safety

While the FTC’s legal argument centers on misrepresentation about product origin, the broader phenomenon of corporate deception can veer into issues of public health and safety. For instance, if a garment is mislabeled, it also raises questions about whether it meets the safety or environmental standards that domestic products might be subject to. Under a broader umbrella, corporate malfeasance—be it pollution, harmful product ingredients, or exploitation of labor—becomes easier to hide when accountability measures and transparent reporting are flouted. Thus, corporate misconduct in one domain can signal or even foreshadow more serious dangers in other areas.

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The Human Toll on Workers and Communities

While the FTC’s official complaint focuses on consumer deception, the bigger picture begs a discussion of how such alleged wrongdoing affects real people. Beyond the immediate frustration of discovering you paid extra for a not-really-American-made T-shirt, there are deeper ripple effects that can damage lives and local economies.

Impact on Local American Workers

Whenever a company claims “Made in the USA” without actually backing it up, it siphons off market share and potential revenues from genuinely American-manufactured goods. If the brand is big enough, it can even outcompete genuine domestic producers who follow the rules but face higher operating costs. Over time, factories that do abide by local labor standards or invest in local communities might struggle to remain open, leading to job losses. In that sense, false origin claims can contribute to the hollowing out of local manufacturing.

Erosion of Community Infrastructure

Wages paid to American workers circulate within local economies. They help sustain community businesses, schools, and infrastructure projects. Conversely, when a portion of that economic value is displaced overseas—yet the product is falsely labeled as domestic—it means communities lose out on the multiplier effects of job creation. This slow erosion, repeated across multiple sectors and thousands of communities, fosters wealth disparity and deteriorates local financial stability.

Health and Social Consequences

While the Lions Not Sheep case does not detail direct public health repercussions, corporate greed can lead to cutting corners on product safety or environmental standards. If a firm is willing to misrepresent product origin, might it also be willing to underreport harmful chemicals or polluting processes? While that’s not directly alleged in this FTC complaint, the broader question must be asked whenever a brand shows itself prepared to lie about fundamentals. In an environment of unbridled profit-seeking, entire communities—especially those with limited resources—are left even more vulnerable to exploitation.

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Global Trends in Corporate Accountability

What happened with Lions Not Sheep is not an isolated event. Around the globe, regulators wrestle with how to enforce product-labeling standards in the face of global supply chains. Even in places with robust consumer protections, unscrupulous operators find ways to mislead the public.

International Disputes and the Global Race to the Bottom

One reason for the near-universal appeal of “Made in the USA” is the association of domestic products with quality standards, labor protections, and community investment. Similar dynamics play out worldwide—for instance, Italy, France, and other countries have “protected designations of origin” for certain goods. Corporations that try to misappropriate those labels come under fire in similar ways. The overarching trend is that, in a globalized economy, supply chains are complex, and verifying every label is a monumental task. Consumers rely on brand reputation, which is why unscrupulous entities can easily exploit that trust if enforcement is weak.

Deregulatory Pressures and Weakened Protections

In many jurisdictions, calls to streamline or reduce regulations often lead to relaxed oversight or enforcement budgets. This might be done in the name of economic efficiency, yet it often has the unintended consequence of creating a more chaotic marketplace in which truthfulness becomes optional for those willing to risk the occasional crackdown. The Lions Not Sheep case thus fits into a global narrative of businesses that find short-term advantage in misrepresenting fundamental aspects of their products to meet consumer demand for ethically produced or locally sourced goods.

The Growing Demand for Corporate Accountability

On the upside, the last decade has seen the rise of movements that push for stricter labeling and transparency. Grassroots advocacy campaigns, consumer watchdog organizations, and the media have shone a brighter spotlight on corporate misconduct. Over time, such pressure can influence lawmakers to introduce or refine legislation that places real teeth behind labeling guidelines—imposing steeper penalties or granting regulators additional investigative power. Indeed, robust corporate accountability on an international scale would help unify standards and make deception less profitable.

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Pathways for Reform and Consumer Advocacy

The Lions Not Sheep complaint is a reminder that consumer vigilance alone is not enough to safeguard truth in marketing. Systems need structural changes—more meaningful penalties, enhanced oversight, or alternative corporate models—to protect the public and support fair competition.

Potential Policy Solutions

1. Stronger Penalties: Ensuring that fines and settlements exceed any potential profits from mislabeling would be a first step. If the law remains lenient, companies might still view the risks as merely a cost of doing business.
2. Mandatory Supply Chain Disclosure: Requiring companies to maintain transparent logs of their supply chain can deter misrepresentation. Some regions already move in this direction for certain product categories, but expansion to apparel could prove beneficial.
3. Whistleblower Protections: Encouraging employees or contractors to report discrepancies in labeling could expedite detection. Strengthening protections for whistleblowers lessens the fear of retaliation.
4. Better Funding for Regulators: If the FTC and similar bodies had more robust budgets, they could proactively investigate suspicious claims rather than waiting for complaints or news coverage to tip them off.

The Role of Consumer Advocacy

• Supporting Verified Seals: Consumers can look for recognized certifications (e.g., certain organizations offer verified “Made in the USA” labels).
• Collective Action: Boycotts, social media campaigns, and public pressure on corporate retailers can highlight questionable labeling.
• Local Direct Purchasing: Buying directly from local artisans and manufacturers can reduce the chain of potential deceptions—but it’s not a complete solution, especially in an online global marketplace.

Skepticism Toward “Green” or “Patriotic” Wash

Broadly speaking, these alleged tactics underscore the need for a general skepticism about corporate claims. If it seems too good—too cheap, or too easily fulfilling high-minded values—consumers should do a little extra homework. This does not place blame on consumers; the system itself should protect them. But given the current climate, an educated and somewhat skeptical consumer base is one of the more direct ways to hold companies accountable in real time.

A Call for Real Corporate Ethics

Ultimately, the solution is not merely about plugging holes in regulations, but also about cultural change in corporate boardrooms. If corporations adopt genuine codes of ethics that emphasize honesty in marketing as a nonnegotiable principle, cases like Lions Not Sheep might become rarer. Unfortunately, reliance on self-regulation is often naive: the profit motive can overshadow moral considerations, especially in a fiercely competitive market. Thus, independent verification, strong enforcement, and an engaged public are crucial components for meaningful reform.

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The FTC released a press release on this scam right here: https://www.ftc.gov/news-events/news/press-releases/2022/05/ftc-takes-action-against-lions-not-sheep-owner-slapping-bogus-made-usa-labels-clothing-imported

💡 Explore Corporate Misconduct by Category

Corporations harm people every day — from wage theft to pollution. Learn more by exploring key areas of injustice.

• 💀 Product Safety Violations — When companies risk lives for profit.
• 🌿 Environmental Violations — Pollution, ecological collapse, and unchecked greed.
• 💼 Labor Exploitation — Wage theft, worker abuse, and unsafe conditions.
• 🛡️ Data Breaches & Privacy Abuses — Misuse and mishandling of personal information.
• 💵 Financial Fraud & Corruption — Lies, scams, and executive impunity.

NOTE:

This website is facing massive amounts of headwind trying to procure the lawsuits relating to corporate misconduct. We are being pimp-slapped by a quadruple whammy:

1. The Trump regime's reversal of the laws & regulations meant to protect us is making it so victims are no longer filing lawsuits for shit which was previously illegal.
2. Donald Trump's defunding of regulatory agencies led to the frequency of enforcement actions severely decreasing. What's more, the quality of the enforcement actions has also plummeted.
3. The GOP's insistence on cutting the healthcare funding for millions of Americans in order to give their billionaire donors additional tax cuts has recently shut the government down. This government shut down has also impacted the aforementioned defunded agencies capabilities to crack down on evil-doers. Donald Trump has since threatened to make these agency shutdowns permanent on account of them being "democrat agencies".
4. My access to the LexisNexis legal research platform got revoked. This isn't related to Trump or anything, but it still hurt as I'm being forced to scrounge around public sources to find legal documents now. Sadge.

All four of these factors are severely limiting my ability to access stories of corporate misconduct.

Due to this, I have temporarily decreased the amount of articles published everyday from 5 down to 3, and I will also be publishing articles from previous years as I was fortunate enough to download a butt load of EPA documents back in 2022 and 2023 to make YouTube videos with.... This also means that you'll be seeing many more environmental violation stories going forward :3

Thank you for your attention to this matter,

Aleeia (owner and publisher of www.evilcorporations.com)

Also, can we talk about how ICE has a $170 billion annual budget, while the EPA-- which protects the air we breathe and water we drink-- barely clocks $4 billion? Just something to think about....