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.
Editors' Picks
Sponsored by
More on Policies & Issues
The Latest
CrimeAug 18, 2026
2 California Men Arrested in Fatal Vehicle Smash RobberyOne is the driver who allegedly crashed a car into a Sacramento jewelry store in April, striking a 71-year-old employee who later died.
ColumnistsAug 18, 2026
Peter Smith: The IKEA Effect and Bridal Branding In a new column, Peter Smith posits that people actually enjoy putting together IKEA furniture, and the same is true for engagement rings.
CrimeAug 18, 2026
Thieves Snatch $1M in Jewelry From New Jersey Jeweler9lakha Jewelers in Iselin, New Jersey, was the target of a smash-and-grab robbery on Aug. 8.
Brought to you by
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying EventsRetailers are seeking new ways to attract customers, increase traffic, and create revenue – Estate buying events are a popular solution.
Lab-GrownAug 18, 2026
Ring Concierge, Kendall Jenner Collab on Bridal Earrings GiveawayThe jeweler has partnered with Jenner’s 818 Tequila brand to gift lab-grown diamond studs to a bride-to-be and their bridal party.
Weekly QuizAug 13, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsAug 17, 2026
Exhibition on Louis Comfort Tiffany’s Studios to Open at The MetThe exhibition will feature more than 100 drawings of stained-glass lampshades, windows, and more, many created by women and émigrés.
CollectionsAug 17, 2026
Marquise Diamonds Dance in Spinelli Kilcollin’s ‘Wren’ CollectionMarquise-cut diamonds in drop charms are the center of the new collection, reflecting the movement of a dancer in modular styles.
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center StageColored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.
Events & AwardsAug 17, 2026
There’s a New Jewelry Show Coming to FloridaThe inaugural Fort Lauderdale Jewelry, Antique, & Object Show will be held from Jan. 28 through Feb. 1, 2027.
IndependentsAug 14, 2026
Smyth Jewelers to Open Fourth LocationThe family-owned jeweler will open a new showroom in Bel Air, Maryland, this fall.
CrimeAug 14, 2026
Wife of Man Convicted in Jeweler’s Murder Sentenced for Conspiracy Amanda Ileana Hernandez is married to Carlos Hernandez, one of two men in prison for the 2024 murder of Michigan jeweler Hussein Murray.
TrendsAug 14, 2026
Paul Morelli’s Latest ‘Wavey Vine’ Earrings Embrace ColorThe reimagined jewel, our Piece of the Week, trades the diamonds in the original 1998 design for blue, pink, yellow, and green sapphires.
Supplier BulletinAug 13, 2026
Your Piece Could Be the One Editors Talk AboutSponsored by American Gem Trade Association
FinancialsAug 13, 2026
Pandora’s ‘Talisman’ Collection Shines, Lab-Grown Diamond Sales FallIn the United States, second-quarter sales were flat amid soft consumer sentiment and lower in-store traffic.
AuctionsAug 13, 2026
This Gold Cadbury ‘Conundrum’ Egg Set a World Auction RecordThe 22-karat gold egg, sold at Batemans Auctioneers in the U.K., was part of a 1980s treasure hunt ad campaign for Cadbury Creme Eggs.
SourcingAug 13, 2026
2,488-Carat Diamond, Largest Found in Botswana, Has a New Owner Lucara Diamond Corp., which recovered the “Motswedi” diamond from the Karowe mine, sold the stone for an undisclosed amount.
CollectionsAug 13, 2026
John Hardy Infuses ‘Icon,’ ‘Heishi’ Collections with ColorThe expanded collections now feature hand-cut gemstones like topaz, tanzanite, chrysoprase, chalcedony, smoky quartz, and fire opal.
Lab-GrownAug 13, 2026
Jean Dousset Opens Third StoreThe lab-grown diamond jewelry brand’s newest boutique is in Westfield Valley Fair in Santa Clara, California.
SourcingAug 12, 2026
Eshed-Gemstar on the Painstaking Process of Cutting ‘The Legacy Emerald’The gemstone supplier and manufacturer acquired the remarkable 104-gram Zambian emerald at Gemfields’ auction in May.
CrimeAug 12, 2026
Elderly NYC Woman Targeted in Jewelry Swap SchemeTwo suspects offered to trade the woman a “winning” lottery ticket for her jewelry.
SourcingAug 12, 2026
Another Diamond Mine Poised to CloseFinsch has been in business rescue since May, and owner Petra Diamonds said it sees no viable path forward for the mine.
CrimeAug 12, 2026
Jewelry Store Employee Gets 20 Years to Life in Choking Death of BossMichel Patrick DeSalles was sentenced after pleading guilty to the 2017 murder of Omid Gholian, who owned a jewelry store in Manhattan.
MajorsAug 12, 2026
Frederick Goldman Names New SVP of SalesLongtime industry executive Beth Miller has taken on the role.
AuctionsAug 11, 2026
Verdura Unicorn Brooch With Royal Connection Up for Auction The brooch was owned by Virginia Fortune Ryan Ogilvy, who served as a lady of the bedchamber to Queen Elizabeth II for nearly 50 years.
MajorsAug 11, 2026
Signet Jewelers Selects Mattel Exec to Lead Zales, BanterJamie Cygielman will take on the role on Aug. 24.
IndependentsAug 11, 2026
Polly’s Fine Jewelry Co-Owner Richard Moore Dies at 69Moore, Polly’s husband, is remembered as a family man with an easygoing spirit and a love for sports and the outdoors.
ColumnistsAug 11, 2026
Creative Connecting: How to Sell Colored Gemstones to Gen ZDuvall O’Steen and Jen Cullen Williams share the best ways to display, present, and explain colored gemstones to younger customers.
