Policies & IssuesFeb 02, 2022
Jewelers Using Payment Apps Should Know This New Tax RulePolicies & 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.
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 …
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.
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.
More on Policies & Issues
The Latest
Supplier BulletinJul 03, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
MajorsJul 03, 2025
Brilliant Earth Names Tennis Star Madison Keys as Its New AmbassadorThe 2025 Australian Open champion is the jewelry brand’s first athlete ambassador.
MajorsJul 03, 2025
Muse Sets Up Shop in Nordstrom’s New Jewelry HallThe West Village jewelry boutique’s new shop-in-shop is the cornerstone of Nordstrom’s revamped jewelry hall.
Brought to you by
Investing in the Next Generation of Bench JewelersThe Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.
SourcingJul 03, 2025
SRK Announces Its Natural Diamonds Are Now Carbon-NegativeThis past year, the manufacturer said it recorded below-zero emissions per carat of natural diamond.
Weekly QuizJul 02, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsJul 03, 2025
Piece of the Week: A Firework of Diamonds From YepremThe brand’s “Golden Strada” statement necklace features round, marquise, and pear diamonds that sparkle like Fourth of July fireworks.
CrimeJul 03, 2025
JSA Shares Holiday Weekend Security Tips Amid Spike in BurglariesJSA’s Scott Guginsky provided a list of nine security measures jewelers should observe while locking up for the long weekend.
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.
MajorsJul 02, 2025
Boucheron Looks to LA for First West Coast FlagshipLocated on Rodeo Drive, the store’s design was inspired by Hollywood and Los Angeles culture.
MajorsJul 02, 2025
Marco Bicego Opens Milan FlagshipThe new location continues the brand’s celebration of its 25th anniversary.
WatchesJul 02, 2025
Chrono24 Revamps Brand, Launches New CampaignThe online watch marketplace’s “Time Is Our Thing” campaign highlights the importance of time.
SourcingJul 02, 2025
Bernadette Mack Joins Gem Legacy as Executive DirectorShe will oversee strategic planning, fundraising, industry partnerships, and the launch of the Gem Legacy Campus in Tanzania.
CrimeJul 02, 2025
Pandora, Amazon Partner to Uncover Counterfeit Jewelry NetworkWorking with Amazon’s Counterfeit Crimes Unit and law enforcement, Pandora helped to shut down a large-scale counterfeit network in China.
MajorsJul 01, 2025
Cast Closes Business, Plans for RelaunchThe jewelry company has closed its three California brick-and-mortar stores, as well as its online shop, for now.
Events & AwardsJul 01, 2025
William Goldberg Diamonds, FIT Partner for Apprenticeship ProgramThe company is providing the opportunity for an FIT student to work alongside master diamond cutter Willie Lopez in its workshop.
IndependentsJul 01, 2025
Elie Hannoush, Founder of Hannoush Jewelers, Dies at 73He is remembered for his successful entrepreneurship, generosity, and dedication to his family.
MajorsJul 01, 2025
Claire’s Is Looking for a Buyer, Report SaysThe jewelry store chain has reportedly been struggling with costs related to tariffs as well as tough retail competition.
TrendsJul 01, 2025
Amanda’s Style File: Red Hot RubiesWelcome warm summer days with red hot rubies perfectly chosen as July’s birthstone.
CollectionsJun 30, 2025
State Property’s New Jewelry Tells ‘The Story of Everything’Co-founders Afzal Imram and Lin Ruiyin brought their son’s story of a cosmic egg, toadstool, and railroad to life in their new collection.
ColumnistsJun 30, 2025
The Smart Lab: Why Q3 Is the Secret Weapon For Holiday Jewelry SalesThe best time to prepare for the holiday season is right now, according to columnist Emmanuel Raheb.
Events & AwardsJun 30, 2025
AGA Names Recipient of 2025 Gemological Education ScholarshipThis year’s winner is Morgan Keefe, who is currently studying at GIA to be a gemologist.
IndependentsJun 30, 2025
Melanie Grant’s New Book Explores 200 Years of Jewelry“The Jewelry Book” comes out this September.
TechnologyJun 27, 2025
Gemist Raises $6M in Funding to Scale Jewelry Tech PlatformThe company is focused on modernizing the custom jewelry buying experience with e-commerce tools like product visualization and 3D styling.
IndependentsJun 27, 2025
David Webb Announces New Hires, PromotionsFollowing its recent acquisition, the storied brand has updated its leadership team and regional managers.
Events & AwardsJun 27, 2025
AGS, GIA Announce Beatrice Shipley Scholarship Winner AGS also named the recipient of its “Women in Leadership” scholarship.
CollectionsJun 27, 2025
Piece of the Week: Buddha Mama’s ‘Monstera’ Wrap RingThe 20-karat yellow gold and diamond wrap ring is modeled after the Monstera plants in the garden of the brand’s Miami villa.
MajorsJun 26, 2025
Why Rocksbox Is Opening Stores As Signet Jewelers DownsizesRocksbox President Allison Vigil shared the retailer’s expansion plans, and her thoughts on opening stores in malls.
