The state is accusing the owners of an Anchorage souvenir-making business of consumer fraud, saying in documents filed with Anchorage Superior Court that their “Made in Alaska” products are actually made in the Philippines.

Robert Merry, Josephine Merry, Mary Uy and Mark Uy, owners of B. Merry Studio, are facing a civil lawsuit from the state, which is seeking restitution, $25,000 per violation of the state’s consumer protection law, attorney fees, punitive damages, and an order that they stop using the “Made in Alaska” label.

B. Merry Studio is a wholesaler that sells souvenir it...