Policies & Issues

FTC Looking to Levy First Fine Under New ‘Made in USA’ Rules

Policies & IssuesApr 21, 2022

FTC Looking to Levy First Fine Under New ‘Made in USA’ Rules

It has brought a complaint against a battery maker labeling its products as “Made in U.S.A” when some parts allegedly come from China.

2021_Made in USA.png
Stock image
Washington, D.C.—The Federal Trade Commission is looking to issue its first fine under the new rules regarding when products can be labeled, marketed, and sold as “Made in the U.S.A.”

The FTC announced last week it has brought a complaint against a company called Lithionics Battery LLC and its founder, owner, and general manager, Steven Tartaglia.

Based in Clearwater, Florida, Lithionics designs and sells batteries and battery accessories for boats as well as recreational and low-speed electric vehicles.

In the complaint, the FTC alleges the company labeled its products with an American flag surrounded by the words “MADE IN U.S.A,” with some product packaging also displaying the statement “Proudly Designed and Built in USA.”

The company used this label and similar origin claims on its website and social media platforms, including in YouTube videos. It also published a chart in its marketing materials highlighting the “advantages” of its products over “imports,” the complaint states.

However, the lithium ion cells the company used were made in China and its battery management systems “incorporate significant other imported components,” the FTC alleges, in violation of the new Made in the USA Labeling Rule.

The attorney listed in court documents as representing Lithionics and Tartaglia, John Dicks II of Akerman LLP, did not respond to an email and voice message left Wednesday seeking comment on the case. 

 Related stories will be right here … 

Under the Made in the USA Labeling Rule, which went into effect in August 2021, it is considered unfair or deceptive to label any product as Made in the United States unless “the final assembly or processing of the product occurs in the United States, all significant processing that goes into the product occurs in the United States, and all or virtually all ingredients or components of the product are made and sourced in the United States,” per the FTC.

An FTC official clarified that the commission has issued decisions and orders on “Made in USA” claims since the 1940s.

What the labeling rule did was codify the established principle that when consumers see claims of “Made in the USA,” “American made,” etc., they believe that no more than a de minimis amount of the product is of foreign origin.

In the Lithionics case, the FTC wants the court to levy a civil penalty of a little over $105,000, three times its profits attributed to “illegal” activity. It also wants the court to prohibit Lithionics from making “unqualified” U.S. origin claims going forward.

The FTC referred the complaint to the U.S. Department of Justice, which filed it and the proposed settlement in a Florida federal court on the FTC’s behalf.

It is up to a federal judge to decide if or when to sign the settlement.

For additional guidance on the standards that must be met to claim that a product is “Made in the USA,” visit the FTC website.

The Latest

Jacquie Aiche’s Starry Galaxy Inlay Necklace
CollectionsApr 26, 2024
Piece of the Week: Jacquie Aiche’s Starry Galaxy Necklace

The necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.

Gemological Institute of America headquarters
Events & AwardsApr 26, 2024
AGS Conclave and GIA Symposium Are Converging

The two organizations will host a joint event, “Converge,” in September 2025.

De Beers Venetia diamond mine in South Africa
SourcingApr 26, 2024
Anglo American Reportedly Shopping De Beers as BHP Eyes Anglo

Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.

1-(3.18).JPG
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry Retail

With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.

Lisa Bridge and Alexis Padis at AGS Conclave 2024
Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President

Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.

Weekly QuizApr 26, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these seven questions.
Take the Quiz
Jesse Cole Savannah Bananas
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana

Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.

John Mayer Audemars Piguet
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition Watch

The Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.

Jewelers of America Fly In Washington, D.C.
Brought to you by
How Jewelers of America Represents Your Business

For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.

Stock image of rough diamonds mined by De Beers
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024

The announcement came as the company reported a 23 percent drop in production in Q1.

Jared Goff Presents Jared Jewelers’ Donation to Give Merit
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to Jared

The three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.

Stock image of police crime scene tape
CrimeApr 24, 2024
Jewelry Crime Declines Significantly, But Dollar Losses Remain High

A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.

Kirsty Hume models Pippa Small Venus collection
CollectionsApr 24, 2024
Pippa Small Announces ‘Venus’ Collection

Inspired by the Roman goddess of love, the designer looked to the sea for her new collection.

Pomellato Pom Pom Dot necklaces
FinancialsApr 24, 2024
Kering’s Jewelry Brands a Bright Spot in Tough Q1

The luxury titan posted declining sales, weighed down by Gucci’s poor performance.

JCK Industry Fund Logo
Events & AwardsApr 24, 2024
JCK Industry Fund Announces 2024 Grant Recipients

The selected nine organizations have outlined their plans for the funds.

Aerial shot of the Diavik Diamond Mine in Canada’s Northwest Territories
SourcingApr 24, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues

The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.

Rolex Oyster Perpetual Deepsea in 18-karat yellow gold
WatchesApr 24, 2024
These Are Rolex’s New Watches for 2024

The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.

National Jeweler columnist Emmanuel Raheb
ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s Day

Emmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.

Hannoush Jewelers Queensbury NY location
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York

Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.

203-carat, 116-carat, and 42-carat diamond
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024

A 203-carat diamond from the alluvial mine in Angola achieved the highest price.

William Ruser: The Jeweler Who Charmed Hollywood book cover
GradingApr 23, 2024
GIA Has a New Book About William Ruser

Ruser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.

Adam Levine and Behati Prinsloo modeling Jacquie Aiche’s Rebel Heart collection
CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati Prinsloo

The “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.

American Gem Society Conclave logo 2024
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024

Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.

Virtual Diamond Boutique
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’

The overhaul includes a new logo and enhanced digital marketplace.

Signet Jewelers employees and St. Jude Children’s Research Hospital
MajorsApr 22, 2024
Signet Raises Nearly $9M for St. Jude Children’s Research Hospital

The money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.

Retrouvaí’s Treasure Necklace
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure Necklace

A new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.

Stock image crime handcuffs
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO Show

Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.

China Pearl collage
MajorsApr 19, 2024
Unique Designs Acquires China Pearl

The move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy