On August 19, 2014, the Department of Justice announced that Samsung Electronics had agreed to pay $2.3 million to settle a qui tam lawsuit alleging Samsung had caused its resellers to violate the Trade Agreements Act (TAA) by selling Samsung products manufactured in non-designated countries (primarily China) on their GSA Multiple Award Schedule contracts. This settlement underscores the need for companies selling to the U.S. under schedule contracts, whether directly or indirectly, to actively monitor changes in their supply chain for both end products as well as components and ancillary items offered separately to U.S. government customers on contracts subject to the TAA.
